BANK OF INDIA vs BANSAL DIAMONDS PVT LTD AND ORS on 20 May 2026

**FINAL ORDER**

1. This original application has been filed by the Applicant Banks no. 1 to 7 on 19.04.2016, through Sh. Munshi Lal, Senior Manager of Applicant No. 1; Sh. Bal Krishan Bhatia, Chief Manager of Applicant No. 2; Sh. S.K. Saha, Assistant General Manager of Applicant No. 3; Mr. Amit Kumar Gupta, Associate Vice President of Applicant No. 4; Sh. R.K. Bajaj, Chief Manager of Applicant No. 5; Sh. Bhopal Singh, Senior Branch Manager of the Applicant No. 6 and Mr. Amit Kumar Gupta, Associate Vice President of the Applicant No. 7, being their authorized representatives, under Section 19 of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 against the Defendants no. 1 to 6 for recovery of a sum of Rs. 313,91,41,957.86 (Rupees Three Hundred Thirteen Crore Ninety One Lakh Forty One Thousand Nine Hundred Fifty Seven and Paise Eighty Six only) as per following table :-

<thead> <tr> <th>Applicant Bank(s)</th> <th>Amount Due<br/>as on 29.02.2016</th> </tr> </thead> <tbody> <tr> <td>Applicant No. 1 /<br/>Bank of India</td> <td>Rs. 76,68,86,650.20</td> </tr> <tr> <td>Applicant No. 2 /<br/>Punjab National Bank</td> <td>Rs. 49,93,56,352.30</td> </tr> <tr> <td>Applicant No. 3 /<br/>Bank of Maharashtra</td> <td>Rs. 45,69,99,925.00</td> </tr> <tr> <td>Applicant No. 4 /<br/>Phoenix ARC Pvt. Ltd.</td> <td>Rs. 42,18,77,703.00</td> </tr> <tr> <td>Applicant No. 5 /<br/>Indian Overseas Bank</td> <td>Rs. 49,47,40,102.89</td> </tr> <tr> <td>Applicant No. 6 /<br/>Syndicate Bank</td> <td>Rs. 29,63,58,387.19</td> </tr> <tr> <td>Applicant No. 7 /<br/>Phoenix ARC Pvt. Ltd.</td> <td>Rs. 20,29,22,837.28</td> </tr> </tbody> </table>

together with aggregate interest thereon at contractual rates with monthly rests as applicable in each individual facility from 01.04.2016 till the date of actual and final realization along with other costs and charges and other relief(s).

1.2 It is pertinent to note here that this OA bearing no. 248/2016 was originally filed before Ld. DRT-II, Delhi, however, in pursuance to Gazette Notification No. 4718 (E) dated 04.10.2022 issued by Government of India, Department of Financial Services, Ministry of Finance, this case file was transferred by Ld. DRT-II, Delhi to this Tribunal in December 2022 and was numbered at TA-344/2022.

2. The brief facts of the case are that the Applicant Bank no. 1 i.e. Bank of India (BOI) is a body corporate constituted by and under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. It is stated that Applicant no 1 is represented by its authorized representative, Sh. Munshi Lal, Senior Manager who is duly authorized vide Power of Attorney dated 25.09.2014 to sign and verify the pleadings for and on behalf of Applicant No. 1.

So far as, Applicant no. 2 i.e. Punjab National Bank (PNB) is concerned, it is a body corporate constituted by and under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980 carrying on its business of Banking. It is stated that Applicant no 3 is represented by its authorized representative, Sh. Bal Krishan Bhalla, Chief Manager who is duly authorized vide Power of Attorney dated 24.08.1983 to sign and verify the pleadings for and on behalf of Applicant No. 2.

So far as, Applicant Bank no. 3 i.e. Bank of Maharashtra (BOM) is concerned, it is a body corporate constituted by and under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 carrying on its business of Banking. It is stated that Applicant no 3 is represented by its authorized representative, Sh. S.K. Saha, Assistant General Manager who is duly authorized vide Power of Attorney dated 21.06.2004 to sign and verify the pleadings for and on behalf of Applicant No. 3.

So far as, Applicant no. 4 i.e. Phoenix ARC Pvt. Ltd. is concerned, it is a company incorporated under the Companies Act 1956 and registered as a Securitisation and Asset Reconstruction Company pursuant to Section 3 of the SARFAESI Act, acting in its capacity as Trustee of Phoenix Trust FY 16-15 (Phoenix) (Assignee), which has acquired the debt of Defendant no. 1 company from Karnataka Bank Limited (Assignor). It is stated that Applicant no 4 is represented by its authorized representative, Sh. Arnit Kumar Gupta, Associate Vice President who is duly authorized vide Board Resolution dated 23.04.2015 to sign and verify the pleadings for and on behalf of Applicant No. 4.

So far as, Applicant No. 5 i.e. Indian Overseas Bank (IOB) is concerned, it is a body corporate constituted by and under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. It is stated that Applicant no 5 is represented by its authorized representative, Sh. R.K. Bajaj, Chief Manager who is duly authorized vide Power of Attorney dated 24.08.1983 to sign and verify the pleadings for and on behalf of Applicant No. 5.

As regard, Applicant No. 6 i.e. Syndicate Bank is concerned, it is a body corporate constituted by and under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. It is stated that Applicant no 6 is represented by its authorized representative, Sh. Bhopal Singh, Branch Manager who is duly authorized vide Power of Attorney dated 15.03.2004 to sign and verify the pleadings for and on behalf of Applicant No. 6.

So far as, Applicant no. 7 i.e. Phoenix ARC Pvt. Ltd. is concerned, it is a company incorporated under the Companies Act 1956 and registered as a Securitisation and Asset Reconstruction Company pursuant to Section 3 of the SARFAESI Act, acting in its capacity as Trustee of Phoenix Trust FY 16-15 (Phoenix) (Assignee), which has acquired the debt of Defendant no. 1 company from State Bank of Patiala (Assignor). It is stated that Applicant no 7 is represented by its authorized representative, Sh. Amit Kumar Gupta, Associate Vice President who is duly authorized vide Board Resolution dated 23.04.2015 to sign and verify the pleadings for and on behalf of Applicant No. 7.

It is also stated in the OA that the Applicants are the Banks / ARC within the meaning of Section 2(d) of the RDB Act, 1993 and the Applicants and Assignors of two of the Applicants had granted various credit / loan facilities to the Defendant, functioning through its Directors.

2.1 It is stated in the OA that the Defendant No. 1 i.e. Bansal Diamonds Pvt. Ltd. is a Private Limited Company incorporated under the Companies Act, 1956 and Defendants no. 2 & 3 are the directors of Defendant no. 1 Company who have extended guarantees in their personal capacities in favour of the Applicants securing the credit facilities extended to the Defendant no. 1. Defendant no. 4 is the father of Defendant no. 2 who has also extended guarantee in his personal capacity in favour of the Applicants. So far as, Defendants no. 5 & 6 are concerned, they are private limited companies which have executed their corporate guarantees in their personal capacities in favour of the Applicants for securing the credit facilities given to the Defendant no. 1 Company. In addition to executing his personal guarantee, the Defendant no. 2 has also created equitable mortgage of his eight (8) immovable properties by deposit of title deeds with intent to create equitable mortgage in favour of the Applicants for securing the credit facilities given to the Defendant no. 1. Moreover, Defendant no. 6 . has executed its corporate guarantee as well as created equitable mortgage of its two (2) immovable properties in favour of the Applicants for securing the credit facilities given to the Defendant no. 1 Company.

2.2 It is stated in the OA that historically, Sh. Surender Kumar Bansal, Defendant no. 2 had initially been carrying on business as sole proprietor of the Firm with the name and style of 'Bansal Diamonds'. Vide request letter dated 03.10.2006, M/s Bansal Diamonds through Mr. Surinder Kumar Bansal, Proprietor requested the NDSME branch, Peeragarhi of the Applicant no. 1 Branch for grant of Cash Credit Facility of Rs. 600.00 Lakh. The sanction of the credit facilities of Rs. 600.00 Lakh was conveyed by the Applicant no. 1 Bank to M/s Diamonds vide Sanction Letter dated 09.11.2006 and the same was accepted by M/s Bansal Diamonds and its guarantors. In order to avail the sanctioned credit facilities, M/s Bansal Diamonds executed the following documents in favour of the Applicant no 1 Bank on 15.11.2016:-

- (i) Demand Promissory Note dated 15.11.2006 for Rs. 5.0 Crore;

- (ii) Letter of Continuity cum Undertaking cum Declaration for Rs. 5.0 Crore dated 15.11.2006;

- (iii) Agreement of Hypothecation of Tangible Movable property for Rs. 5.0 Crore;

- (iv) Deed of Guarantee dated 15.11.2006 executed by Mr. Manoj Jain and Mr. Des Raj, in favour of the Applicant no. 1 Bank for an amount of Rs. 5.0 Crore;

- (v) Demand Promissory Note dated 15.11.2006 for Rs. 1.0 Crore;

- (vi) Letter of Continuity cum Undertaking cum Declaration for Rs. 1.0 Crore dated 15.11.2006 executed by M/s Bansal Diamonds and the two guarantors;

- (vii) Agreement of Charge and Hypothecation of Book Debts for Rs. 1.0 Crore;

- (viii) Deed of Guarantee dated 15.11.2006 executed by Mr. Manoj Jain and Mr. Des Raj, in favour of the Applicant no. 1 Bank for an amount of Rs. 1.0 Crore;

- (ix) Declaration Re : Hypothecation of stocks / Book-Debts dated 15.11.2006;

- (x) Declaration / Undertaking for creation of Equitable Mortgage executed by Mr. Surinder Kumar Bansal.

Thereafter on 18.11.2006, Mr. Surinder Kumar Bansal, Prop. of M/s Bansal Diamonds visited the New Delhi SME Branch, Peeragarhi of the Applicant no. 1 Bank for creation of equitable mortgage of immovable properties owned by him, as collateral security for the said credit facilities. He deposited in his personal capacity the title deeds / writings of the immovable properties owned by him as detailed hereunder:-

- (a) Portion (Shop) bearing Pv.t No. 4 on Ground Floor, towards Gali No. 7 & 8, having an area measuring about 200 sq. ft. which is part of built up property on Plot of land measuring 278

sq. Yds., bearing Municipal No. 2502, Ward No. XVI, on lease hold Plot No. 305, Block-M, Gali No. 7 & 8 situated at Nawala Estate, Beadonpura, Karol Bagh, New Delhi – 110005 (hereinafter referred to as Property 'A'); (b) Built-up portion bearing Private Shop No. 1, in Lower Ground Floor / Basement, having an area measuring about 310.72 sq. ft. in the plot of land measuring 278 sq. yds. bearing Municipal No. 2502, Ward No. XVI, on lease hold Plot No. 305, Block-M, Gali No. 7 & 8 situated at Nawala Estate, Beadon Pura, Karol Bagh, New Delhi – 110005 (hereinafter referred to as Property 'B');

(c) Built-up portion bearing Private Shop No. 2, in Lower Ground Floor / Basement, having an area measuring about 281.96 sq. ft. in the plot of land measuring 278 sq. yds. bearing Municipal No. 2502, Ward No. XVI, on lease hold Plot No. 305, Block-M, Gali No. 7 & 8 situated at Nawala Estate, Beadon Pura, Karol Bagh, New Delhi – 110005 (hereinafter referred to as Property 'C'); (d) Portion bearing Pvt. Shop No. 3, in Lower Ground Floor / Basement, having an area measuring about 299 sq. ft. in the plot of land measuring 278 sq. yds. bearing Municipal No. 2502, Ward No. XVI, Plot No. 305, Block-M, situated at Nawala Estate, Beadon Pura, Karol Bagh, New Delhi (hereinafter referred to as Property 'D');;

- (e) Portion bearing Pvt. Shop No. 4, in Lower Ground Floor / Basement, having an area measuring about 292.60 sq. ft. in the plot of land measuring 278 sq. yds. bearing Municipal No. 2502, Ward No. XVI, Plot No. 305, Block-M, situated at Nawala Estate, Beadon Pura, Karol Bagh, New Delhi (hereinafter referred to as Property 'E');; It is stated in the OA that the title deeds / documents / writings for the aforesaid properties were deposited by Mr. Surender Kumar Bansal [details of aforesaid five properties 'A' to 'E' as well as their respective title deeds have been given in Para 5 (5.1) (a) to (e) at Page 19 to 24 of the OA].

2.3 It is further stated in the OA that on 20.06.2007, on the request of M/s Bansal Diamonds, the Applicant no. 1 Bank's NDSME, Peeragarhi Branch had sanctioned additional temporary overlimit of Rs. 1.50 Crore and to avail the same, M/s Bansal Diamonds had executed the applicable security / loan documents in favour of the Applicant no. 1 Bank on 22.06.2007. Further more, Mr. Surinder Kumar Bansal had also conveyed the oral assent on 22.06.2007 in respect of the aforesaid five immovable properties which were originally charged on 18.11.2006, for securing the temporary overlimit of Rs. 1.50 Crore, thus totalling the amount of Rs. 7.50 Crore. In this regard, copy of relevant pages of the Visit Register as well as Recital Register of the NDSME Branch for applicant no. 1 branch for dated 22.06.2007 (wherein the oral assent conveyed by Mr. Surinder Kumar Bansal was recorded), are relevant.

2.4 Thereafter, on 21.09.2007, on the request of M/s Bansal Diamonds, the Applicant no. 1 Bank's NDSME, Peeragarhi Branch had sanctioned additional temporary Overlimit (Short Term Demand Loan) of Rs. 3.00 Crore and to avail the same, M/s Bansal Diamonds had executed the following security / loan documents in favour of the Applicant no. 1 Bank on 26.09.2007:-

- (i) Demand Promissory Note dated 26.09.2007 for Rs. 3.0 Crore;

- (ii) Agreement of Hypothecation to secure demand Loan / cash Credit dated 26.09.2007;

- (iii) Letter of Continuity-cum-undertaking cum declaration for Rs. 3.0 Crore dated 26.09.2007 executed by M/s Bansal Diamonds and the two guarantors;

- (iv) Deed of Guarantee dated 26.09.2007 executed by Mr. Manoj Jain and Mr. Des Raj, in favour of the Applicant no. 1 Bank for an amount of Rs. 3.0 Crore.

Further more, Mr. Surinder Kumar Bansal had also conveyed the oral assent on 26.09.2007 in respect of the aforesaid five immovable properties which were originally charged on 18.11.2006 and were recharged by way of extension of mortgage and charge on 22.06.2007, for securing the additional temporary overlimit (Short Term Demand Loan) of Rs. 3.00 Crore, thus totaling to the amount of Rs. 9.00 Crore. In this regard, copy of relevant pages of the Visit Register as well as Recital Register of the NDSME Branch for applicant no. 1 branch for dated 26.09.2007 (wherein the oral assent conveyed by Mr. Surinder Kumar Bansal was recorded), are relevant.

2.5 It is also stated in the OA that during the pendency of the aforesaid financial assistance, a Private Limited Company by name and style Bansal Diamonds Pvt. Ltd. was incorporated under the Companies Act, 1956, with Mr. Surinder Kumar (sole proprietor of Bansal Diamonds referred to in earlier paras), and Ms. Shefali Bansal, as initial subscribers. This company was allotted Corporate Identity Number (CIN) U277205DL2007PTC167931. Thus, a copy of certified copy of Memorandum of Association and the Articles of Association of the said Company with Certificate of Incorporation dated 10.09.2007 was furnished to the Bank by Bansal Diamonds Pvt. Ltd. through Mr. Surender Kumar Bansal, director.

2.6 It is stated in the OA that M/s Bansal Diamonds Pvt. Ltd. is the Defendant no. 1 herein and it had approached the Bank for sanction of credit facilities and on consideration of their request, the New Delhi Corporate Banking Branch of the Applicant No. 1 Bank had conveyed sanction of credit facilities totaling Rs. 1924.00 Lakh on the terms stated in the Sanction Letter dated 01.12.2007 which was duly accepted by Defendant no. 1 and other Directors / Guarantors. It is further stated that for availing the sanctioned credit facilities, Defendant no. 1 company had executed following security / loan documents on 03.12.2007, through Mr. Surendra Kumar Bansal / Defendant no. 1, its authorized representative / signatory as authorized vide Resolution passed in the meeting of the Board of Directors held on 01.12.2007:-

- (i) Demand Promissory Note dated 03.12.2007 for Rs. 1600.00 Lakh;

- (ii) Multipurpose Loan documents dated 03.12.2007 for Rs. 1600.00 Lakh signed by M/s Bansal Diamonds Pvt. Ltd., through its Director Mr. Surendera Kumar Bansal, and also by other Director Ms. Shefali Bansal and Guarantors;

- (iii) Multipurpose Loan documents dated 03.12.2007 for Rs. 500.00 Lakh signed by M/s Bansal Diamonds Pvt. Ltd., through its Director Mr. Surendera Kumar Bansal, and also by other Director Ms. Shefali Bansal and Guarantors;

- (iv) Agreement of Hypothecation dated 03.12.2007 of Plant and Machinery, Stock and Book Debts for the credit facilities of Cash Credit (Stocks) of Rs. 1600.00 Lakh and Cash Credit (Book Debts) of Rs. 500.00 Lakh;

- (v) Credit Facility Agreement dated 03.12.2007 for Fund Based Facilities of Rs. 1600.00 Lakh;

- (vi) Deed of Guarantee dated 03.12.2007 executed by Mr. Des Raj, Mr. Manoj Jain, Ms. Shefali Bansal and Mr. Surender Kumar Bansal for the amount of Rs. 1600.00 Lakh;

- (vii) Letter of Declaration / Undertaking / Assurance dated 03.12.2007 executed by Mr. Surender Kumar Bansal that he will create equitable mortgage of commercial property consisting of one shop at Ground Floor, Gold Plaza, Gurudwara Road, Karol Bagh, New Delhi latest by 15.03.2008.

Mr. Surinder Kumar Bansal/ Defendant no. 2 had called on the NDSME, Peeragarhi Branch of the Applicant no. 1 Bank on 03.12.2007 and handed over and re-deposited the title deeds relating to his various immovable properties as stated in earlier paras and stated that he made the deposit of the title deeds with intent to create security in favour of the Applicant no. 1 bank by way of equitable mortgage over the said immovable properties for the due repayment by the Defendant no. 1 to the Applicant no. 1 bank of the balance from time to time in the cash credit account limit Rs. 1600.00 Lakh, with interest at the agreed rate with monthly rests. The title deeds of five immovable properties which had earlier been deposited with the Applicant no. 1 bank on 18.11.2006 for creating equitable mortgage as security for the credit facilities sanctioned and disbursed to Defendant no. 1 (as described above) were redeposited on 03.12.2007 Further more, the title deeds / documents of additional property (6^th property mentioned above) were additionally deposited on 03.12.2007. In this matter, equitable mortgage of the six (6) immovable properties was created as a security for the credit facilities sanctioned to the Defendant no. 1 Company which are as follows:-

- (a) Portion bearing Pvt. Shop No. 4 on Ground Floor, towards Gali No. 7 & 8, having an area measuring about 200 sq. ft. Plot of land measuring 278 sq. Yds., bearing Municipal No. 2502, Ward No. XVI, Plot No. 305, Block-M, situated at Nawala Estate, Beadon Pura, Karol Bagh, New Delhi – 110005 (Property 'A');

- (b) Portion bearing Pvt. Shop No. 1, in Lower Ground Floor / Basement, having an area measuring about 281.96 sq. ft. plot of land measuring 278 sq. yds. bearing Municipal No. 2502, Ward No. XVI, Plot No. 305, Block-M, situated at Nawala Estate, Beadon Pura, Karol Bagh, New Delhi (Property 'B');

- (c) Portion bearing Pvt. Shop No. 2, in Lower Ground Floor / Basement, having an area measuring about 281.96 sq. ft. plot of land measuring 278 sq. yds. bearing Municipal No. 2502, Ward No. XVI, Plot No. 305, Block-M, situated at Nawala Estate, Beadon Pura, Karol Bagh, New Delhi (Property 'C');

- (d) Portion bearing Pvt. Shop No. 3, in Lower Ground Floor / Basement, having an area measuring about 299 sq. ft. plot of land measuring 278 sq. yds. bearing Municipal No. 2502, Ward No. XVI, Plot No. 305, Block-M, situated at Nawala Estate, Beadon Pura, Karol Bagh, New Delhi (Property 'D');

- (e) Portion bearing Pvt. Shop No. 4, in Lower Ground Floor / Basement, having an area measuring about 292.60 sq. ft. plot of land measuring 278 sq. yds. bearing Municipal No. 2502, Ward No. XVI, Plot No. 305, Block-M, situated at Nawala Estate, Beadon Pura, Karol Bagh, New Delhi (Property 'E');

- (f) Portion bearing Pvt. Shop No. 5, in Lower Ground Floor / Basement, having an area measuring about 612 sq. ft. plot of land measuring 278 sq. yds. bearing Municipal No. 2502, Ward No. XVI, Plot No. 305, Block-M, situated at Nawala Estate, Beadon Pura, Karol Bagh, New Delhi (Property 'F'); [detail of Properties (6 in no.) as well as respective title deeds have been given in Para 5 (5.4) (a) to (f) at Page 31 to 37 of the OA].

In this regard, copy of relevant pages of the Visit Register as well as Recital Register of the NDSME Branch for applicant no. 1 branch for dated 03.12.2007 (wherein the oral assent conveyed by Mr. Surinder Kumar Bansal was recorded), are relevant.

It is also stated that for availing disbursement of the aforesaid sanctioned credit facilities, the Defendant no. 1 Company submitted a request letter dated 03.12.2007, whereby it was inter alia authorized to the Applicant Bank to transfer the entire balance outstanding along with upto date interest lying in the Cash Credit Account Nos. 604930110000045 & 604930110000046 and Demand Loan Account No. 604985310000001 of M/s Bansal Diamond (Proprietorship Firm of Mr. Surender Kumar Bansal) and Cash Credit Account No. 604930110000059 & 604930110000060 of M/s Om Enterprises (Partnership Firm) to the Cash Credit Account of Defendant no. 1 Company, as the entire assets and liabilities of the said M/s Bansal Diamonds (Proprietorship Firm of Mr. Surender Kumar Bansal) and said M/s Om Enterprises (Partnership Firm) had been taken over by the Defendant no. 1 Company.

The Defendant no. 1 Company had created charge on its assets in favour of the Applicant no. 1 Bank for the amount of Rs. 1600.0 Lakh and the same was registered with the ROC by filing Form 8 through the hands of its Directors.

Consequently, disbursement of credit facilities to the Defendant no. 1 Company was done by the Applicant no. 1 Bank in the normal course of business, in account no. 604930110000076.

2.7 In the month of January 2008, the Defendant no. 1 Company approached the Applicant no. 1 bank for additional credit facilities and on their request, the Applicant no. 1 Bank sanctioned temporary over limit of Rs. 375.00 Lakh for a period of 90-days, over and above the existing sanction. Defendant no. 1 company provided to the Bank a copy of the certified copy of an Extract from the minutes of meeting of the Board of Directors held on 22.01.2008. To avail the additional facility of Rs. 375.0 Lakh, the Defendant no. 1 company executed on 09.02.2008 the following security / loan documents in favour of the Applicant no. 1 Bank:-

- (i) Demand Promissory Note dated 09.02.2008 for Rs. 3,75,00,000/-;

- (ii) Credit Facility Agreement dated 09.02.2008 for the amount of Rs. 1975.00 Lakh;

- (iii) Supplemental Deed of Hypothecation dated 09.02.2008 for Rs. 1975.00 Lakh;

- (iv) Letter dated 09.02.2008 of continuity cum undertaking cum declaration;

- (v) Deed of Guarantee dated 09.02.2008 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Manoj Jain and Mr. Des Raj Aggarwal.

Mr. Surender Kumar Bansal/ Defendant no. 2 had called on the NDSME, Peeragarhi Branch of the Applicant no. 1 Bank on 09.02.2008 and conveyed oral consent for extension of the equitable mortgage on his various immovable properties for the due repayment by the Defendant no. 1 to the Applicant no. 1 bank of the balance from time to time in the cash credit account limit Rs. 1600.00 Lakh, and temporary over limit of Rs. 375.00 Lakh. The title deeds of six immovable properties had earlier been deposited with the Applicant no. 1 bank for creating equitable mortgage as security for the credit facilities sanctioned and disbursed to Defendant no. 1 (as described above). In this manner, equitable mortgage of all the six (6) immovable properties was extended as a security for the temporary over limit of Rs. 375.0 Lakh in Cash Credit Account sanctioned to the Defendant no. 1.

In this regard, copy of relevant pages pertaining to date 09.02.2008 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 as well as six relevant pages of the Recital Register pertaining to date 09.02.2008 of the NDSME Branch for applicant no. 1 are relevant.

Further more, on 20.02.2008, Defendant no. 2 had called on the NDSME Peeragarhi Branch of Applicant no. 1 Bank and deposited the original title deeds of his another immovable property comprising of land and building and other structures and other fixtures and fittings erected or installed thereon (both present and future) situate at Pvt. Shop No. 112, 1^st Floor, in the building bearing municipal No. 2059, Gali No. 38, Block-G, known as "Gold Plaza" situated at Gurudwara Road, Karol Bagh - 110005 (hereinafter referred to as Property 'G'). The title deeds / documents / writings for the aforesaid property were deposited by defendant no. 2 [detail of title deeds given in Para 5.6 at Page 41 of OA].

In this regard, copy of relevant pages pertaining to date 20.02.2008 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 as well as relevant pages of the Recital Register pertaining to date 20.02.2008 of the NDSME Branch for applicant no. 1 are relevant.

2.8 On 20.10.2008, on the request of Defendant no. 1 Company, the Applicant no. 1 Bank allowed to it temporary over limit of Rs. 4,00,00,000/- for a period of 30-days and for availing the same, the Defendant no. 1 company executed the following documents on 20.10.2008:-

- (i) Demand Promissory Note dated 20.10.2008 for Rs. 4,00,00,000/-;

- (ii) Supplemental Deed of Hypothecation dated 20.10.2008;

- (iii) Letter of continuing cum undertaking cum declaration dated 20.10.2008 for Rs. 4,00,00,000/-

- (iv) Confirmation and Acknowledgement of the outstanding indebtedness dated 20.10.2008 for the amounts of Rs. 10,89,28,100.09 and Rs.

4,98,32,890/- as on 18.10.2008 with further interest from 22.09.2008;

- (v) Deed of Guarantee dated 20.10.2008 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Manoj Jain and Mr. Des Raj Aggarwal for the amount of Rs. 20,00,00,000/-.

- (vi) Certified true copy of an extract from the minutes of a meeting of the Board of Directors of Defendant no. 1 Company held on 20.10.2008.

Mr. Surender Kumar Bansal/ Defendant no. 2 had called on the NDSME, Peeragarhi Branch of the Applicant no. 1 Bank on 20.10.2008, conveyed his oral consent for extension of the equitable mortgage on his 7 immovable properties described in earlier Paras and called as property 'A to G' and stated that the same will now secure the additional temporary over limit of Rs. 400.0 Lakh, thus totaling Rs. 2000.0 Lakh.

In this regard, copy of relevant pages pertaining to date 20.10.2008 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 as well as relevant pages of the Recital Register pertaining to date 20.10.2008 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to G' have been recorded, 2.9 On the request dated 23.08.2008 of the Defendant no. 1 Company. the Applicant no. 1 Bank sanctioned enhanced credit facilities Rs. 30,00,00,000/- on various terms and conditions as stated in the Sanction Letter dated 22.12.2008. To avail the aforesaid enhanced credit facilities, Defendant no. 1 company through Sh. Surendra Kumar Bansal /

Defendant no. 2 its authorized representative / signatory as authorized vide Resolution passed in the meeting of the Board of Directors held on 01.12.2007, executed on 24.12.2008 the following security / loan documents:-

- (i) Demand Promissory Note dated 24.12.2008 for Rs. 14,00,00,000/-;

- (ii) Letter of continuity cum undertaking cum declaration dated 24.12.2008 for Rs. 30,00,00,000/-

- (iii) Demand Promissory Note dated 24.12.2008 for Rs. 4,00,00,000/-;

- (iv) Letter of continuity cum undertaking cum declaration dated 24.12.2008 for Rs. 9,00,00,000/-

- (v) Supplemental Deed of Hypothecation dated 24.12.2008 for Rs. 30,00,00,000/-;

- (vi) Credit Facility Agreement dated 24.12.2008 for Rs. 30,00,00,000/-;

- (vii) Deed of Guarantee dated 24.12.2008 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Manoj Jain and Mr. Des Raj Aggarwal for the amount of Rs. 3000.00 Lakh;

- (viii) Confirmation and acknowledgment of the outstanding indebtedness dated 24.12.2008 for the amounts of Rs. 14,99,98,306.09, Rs. 4,99,99,99,645/-, Rs. 24,41,840/- and Rs. 6,81,644 as on 22.12.2008.

Mr. Surender Kumar Bansal had called on the NDSME, Peeragarhi Branch of the Applicant no. 1 Bank on 24.12.2008 and conveyed oral consent for extension of the equitable mortgage on his 7 immovable properties already mortgaged in favour of the Applicant Bank, as described in earlier paras and called as Property 'A to G' and stated that the same will now secure the increased credit facilities totaling Rs. 3000.00 Lakh.

In this regard, copy of relevant pages pertaining to date 24.12.2008 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 as well as the relevant pages of the Recital Register pertaining to date 24.12.2008 of the NDSME Branch for applicant no. 1 (wherein the recital of the mortgage of the properties 'A to G' have been recorded) are relevant.

During this visit, Defendant no. 2 also handed over to the Applicant no. 1 Bank and deposited the title deeds relating to another immovable property comprising of land and building and other structures / and fittings erected or installed thereon situated at Property bearing Unit no. 3, measuring about 1070 sq. fts., on the second floor, without terrace / roof rights out of property bearing no. 2162/64 & 2174-75, Ward No. XVI, built on Plot No. 20, in Block-J, Gali No. 60-81, situated at Nawala, Karol Bagh, New Delhi with intent to create security in favour of the Applicant no. 1 Bank by way of equitable mortgage over the said immovable property for the due repayment by Defendant no. 1 to the Applicant no. 1 Bank of the balance from time to time in the Cash Credit accounts for the aggregate limit Rs. 3000.00 Lakh with interest at the agreed rate with monthly rests (hereinafter referred to as Property 'H').

In this regard, relevant page of the Recital Register pertaining to dated 24.12.2008 of the NDSME Peeragarhi Branch of Applicant no. 1, wherein the recital of mortgage of the property 'H' has been recorded, is relevant.

The title deeds / documents / writings for the aforesaid property that were deposited by defendant no. 2 [detail of title deeds given in Para 5.8 at Page 47 & 48 of OA].

2.10 On 30.01.2009, on the request of Defendant no. 1 Company, the Applicant no. 1 Bank sanctioned to it additional adhoc limit (Hyp. Of Socks) of Rs. 600.00 Lakh in addition to the existing facility of Rs. 3000.00 Lakh, on various terms and conditions as stated in Sanction Letter dated 30.01.2009. To avail the aforesaid enhanced credit facilities, Defendant no. 1 company executed the following loan / security documents on 30.01.2009:-

- (i) Demand Promissory Note dated 30.01.2009 for adhoc amount of Rs. 6,00,00,000/-;

- (ii) Letter of continuity cum undertaking cum declaration dated 30.01.2009 for total amount of Rs. 3600.00 Lakh;

- (iii) Credit Facility Agreement dated 30.01.2009 for the amount of Rs. 3600.00 Lakh;

- (iv) Supplemental Deed of Hypothecation 30.01.2009 for Rs. 36,00,00,000/-;

- (v) Confirmation and Acknowledgement dated 30.01.2009 of the outstanding indebtedness for the amounts of Rs. 20,86,41,238.89 in Cash Credit (Hyp. Of Stock) and Rs. 8,99,97,512 in Cash Credit (Hyp. Of Book Debts) as on 29.01.2009 with further interest due and payable from 27.01.2009;

- (vi) Deed of Guarantee dated 30.01.2009 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Manoj Jain, Mr. Des Raj Aggarwal and M/s SK trading Pvt. Ltd. for the amount of Rs. 3600.00 Lakh;

- (vii) Declaration / Undertaking dated 30.01.2009 by M/s Bansal Diamonds Pvt. Ltd., the Defendant no. 1 company that it shall get created equitable mortgage of vacant commercial plot at Sector 9, Plot No. 232 (admeasuring 540 sq. mts.) Dwarka, New Delhi, in the name of SSK Trading Pvt. Ltd. of value 3610.78 Lakh latest by 15.02.2009;

- (viii) Declaration / Undertaking dated 30.01.2009 by M/s SSK Trading Pvt. Ltd. / Defendant no. 5 Company that it shall create equitable mortgage of vacant commercial plot at Sector 9, Plot No. 232 (admeasuring 540 sq. mts.) Dwarka, New Delhi, in the name of SSK Trading Pvt. Ltd. of value 3610.78 Lakh latest by 15.02.2009.

During his visit to NDSME, Peeragarhi Branch of the Applicant no. 1 Bank on 30.01.2009, Defendant no. 2 conveyed his oral consent for extension of the equitable mortgage on his 8 immovable properties already mortgaged in favour of the Applicant no. 1 Bank, as described in earlier Paras and called as property 'A to H' and stated that the same will now secure the increased credit facilities totaling Rs. 3600.00 Lakh.

In this regard, copy of relevant pages pertaining to date 30.01.2009 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 as well as 8 relevant pages of the Recital Register pertaining to date 30.01.2009 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to H' of Mr. Surender Kumar Bansal have been recorded, are annexed with the OA, 2.11 On the request dated 16.02.2010 of Defendant no. 1 Company, the Applicant no. 1 Bank sanctioned additional adhoc limit of Rs. 150.00 Lakh on various terms and conditions as stated in Sanction Letter dated 06.03.2010 which was duly accepted by the Defendants. To avail the aforesaid enhanced credit facilities, Defendant no. 1 company submitted to the Applicant no. 1 Bank a certified copy of an extract from minutes of a meeting of Board of Directors of the company held on 08.03.2010. The Defendant no. 1 company, through Sh. Surendra Kumar Bansal / Defendant no. 2, its authorized representative / signatory, and the guarantors executed the following loan / security documents on 12.03.2010 :-

- (i) Demand Promissory Note dated 12.03.2010 for Rs. 1,50,00,000/-;

- (ii) Letter of continuity cum undertaking cum declaration dated 12.03.2010 for maximum of Rs. 3750.00 Lakh;

- (iii) Supplemental Deed of Hypothecation 12.03.2010 for the enhanced aggregate limits of Rs. 37,50,00,000/-;

- (iv) Deed of Guarantee dated 12.03.2010 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Manoj Jain, Mr. Des Raj Aggarwal for the amount of Rs. 37,50,00,000/-.

During his visit to NDSME, Peeragarhi Branch of the Applicant no. 1 Bank on 12.03.2010, Defendant no. 2 conveyed his oral consent for extension of the equitable mortgage on his 8 immovable properties already mortgaged in favour of the Applicant no. 1 Bank, as described in earlier Paras and called as property 'A to H' and stated that the same will now secure the additional / enhanced credit facilities totaling Rs. 7500.00 Lakh.

In this regard, copy of relevant pages pertaining to date 12.03.2010 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 as well as 8 relevant pages of the Recital Register pertaining to date 12.03.2010 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to H' of Mr. Surender Kumar Bansal have been recorded, are annexed with the OA.

2.12 On 06.03.2010, on the request of Defendant no. 1 Company, the Applicant no. 1 Bank sanctioned to it enhanced credit facilities of Rs. 45.00 Crore on various terms and conditions as stated in Sanction Letter dated 06.03.2010 which was duly accepted by the Defendants. In this sanction, condition of additional collateral securities by way of equitable mortgage of commercial plots bearing nos. 230 and 231, Service Centre, Sector 9, Dwarka owned by M/s A.S. Technobuild Pvt. Ltd. (Defendant no. 6) had been stipulated, in addition to the security by means of existing equitable mortgage of 8 immovable properties owned by Defendant no. 2. The said M/s A.S. Technobuild Pvt. Ltd. was also stipulated as a guarantor. To avail the aforesaid enhanced credit facilities, Defendant no. 1 company submitted to the Applicant no. 1 Bank a certified copy of an extract from minutes of a meeting of Board of Directors of the company held on 05.04.2010. M/s SSK Trading Pvt. Ltd. and M/s A.S. Technobuild Pvt. Ltd. (Defendants no. 5 & 6 respectively) also submitted to the Applicant no. 1 Bank a certified copy each of an extract form minutes of their meetings of Board of Directors held on 05.04.2010. The Defendants no. 5 & 6 agreed to stand as guarantors to secure the liability of Defendant no. 1 in respect of the adhoc facilities.

The Defendants executed on 09.04.2010 the various loaning / security documents as detailed below:-

- (i) Demand Promissory Note dated 09.04.2010 for Rs. 13,00,00,000/-;

- (ii) Letter of continuity cum undertaking cum declaration dated 09.04.2010 for the amount of Rs. 13,00,00,000/- taking the total amount of Cash Credit Hypothecation of Stock to Rs. 23,00,00,000/-;

- (iii) Credit Facility Agreement dated 09.04.2010 for the amount of Rs. 4500.00 Lakh;

- (iv) Supplemental Deed of Hypothecation 09.04.2010 for aggregate Rs. 45,00,00,000/-

- (v) Confirmation and acknowledgment dated 09.04.2010 of the outstanding indebtedness for the amounts of Rs. 28,40,36,491.80 in Cash Credit (Hyp. Of Stocks) and Rs. 8,99,65,260/- in Cash Credit (Hyp. Of Book Debts) as on 08.04.2010 with further interest due and payable from 29.03.2010;

- (vi) Deed of Guarantee dated 09.04.2010 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Des Raj Aggarwal, M/s A.S. Technobuild Pvt. Ltd. and M/s SSK Trading Pvt. Ltd. for the amount of Rs. 45,00,00,000/-.

During his visit to NDSME, Peeragarhi Branch of the Applicant no. 1 Bank on 09.04.2010, Defendant no. 2 in his personal capacity conveyed his oral consent for extension of the equitable mortgage on his 8 immovable properties already mortgaged in favour of the Applicant no. 1 Bank, as described in earlier Paras and called as property 'A to H' and stated that the same will now secure the aggregate enhanced credit facilities of Rs. 4500.00 Lakh to the Defendant no. 1.

In this regard, copy of relevant pages pertaining to date 09.04.2010 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 as well as 8 relevant pages of the Recital Register pertaining to date 09.04.2010 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to H' of Mr. Surender Kumar Bansal for credit facilities of Rs. 4500.00 Lakh to M/s Bansal Diamond Pvt. Ltd. have been recorded, are annexed with the OA, Moreover, Mr. Surender Kumar Bansal, in his capacity as one of the Director of M/s A.S. Techno Build Pvt. Ltd. / Defendant no. 6, pursuant to Board Resolution passed by Defendant no. 6 on 05.04.2010, handed over on 09.09.2010

to the Applicant no. 1 Bank title deeds relating to Company's immovable property / ies being (i) all that piece of land with building sheds and structure standing thereon situates at Plot No. 230 (540 Sq. mts.), Commercial Service Centre, Sector – 9, Dwarka, New Delhi – 110075 (hereinafter referred to as Property 'I') owned by M/s A.S. Techno Build Pvt. Ltd. and (ii) all that piece of land with building sheds and structure standing thereon situates at Plot No. 231 (540 Sq. mts.), Commercial Service Centre, Sector – 9, Dwarka, New Delhi – 110075 (hereinafter referred to as Property 'J') owned by M/s A.S. Techno Build Pvt. Ltd., with an intent to create security in favour of the Applicant no. 1 Bank by way of equitable mortgage for the due repayment by the Defendant no.1 Company to the Applicant no. 1 Bank in the Cash Credit Account Limit of Rs. 45,00,00,000/-.

In this regard, copy of relevant pages of the Recital Register pertaining to date 09.04.2010 of the NDSME Branch of applicant no. 1, wherein the recital of the aforesaid 2 immovable properties 'I' & 'J' of M/s Techno Build Pvt. Ltd. for credit facilities of Rs. 4500.00 Lakh to M/s Bansal Diamond Pvt. Ltd. have been recorded, are annexed with the OA, Further, the title deeds / documents / writings for the aforesaid properties 'I' & 'J' were deposited by Mr. Suriender Kumar Bansal [details of title deeds have been given in Para 5(5.11) at page 58 to 61 of the OA].

2.13 In the month of July 2010, the Defendant no. 1 Company had approached the Punjab National Bank (PNB)

/ Applicant no. 2 at its new Rajinder Nagar Branch, New Delhi – 110060 for sanction of Working Capital Facilities and on their request, Applicant No. 2 Bank had sanctioned credit facilities of Rs. 25.00 Crore vide Sanction Letter dated 19.08.2010. To avail the said facility of Rs. 25.00 Crore, the Defendant no. 1 through Defendant no. 2, by virtue of Resolution passed in the meeting of Board of Directors held on 18.08.2010 and the other defendant executed various loaning / security documents in favour of PNB / Applicant no. 2 herein on individual basis which are as follows:-

- (i) Resolution in the meeting of Board of Directors of Defendant no. 1 Company held on 18.08.2010;

- (ii) Resolution in the meeting of Board of Directors of Defendant no. 1 Company held on 19.08.2010;

- (iii) Agreement of Hypothecation of goods and book debts to secure Cash Credit Facility dated 01.09.2010;

- (iv) Agreement of Hypothecation of current assets dated 01.09.2010;

- (v) Agreement of Hypothecation of moveable assets forming part of fixed / block assets dated 01.09.2010;

- (vi) Agreement of Guarantee of Defendants no. 2, 3 & 4 dated 01.09.2010;

- (vii) Agreement of Guarantee of Defendant no. 5 dated 01.09.2010;

- (viii) Agreement of Guarantee of Defendant no. 6 dated 01.09.2010;

- (ix) Letter dated 27.08.2010 from Bank of India / Applicant no. 1 ceding pari passu charge;

- (x) Letter dated 31.08.2010 addressed to Applicant no. 1 ceding pari passu charge;

- (xi) Letter dated 01.09.2010 of Applicant no. 2 addressed to Applicant no. 1 Bank requesting for extending charge of mortgage.

2.14 On the request of Defendant no. 1 Company, Bank of Maharashtra (BOM) / Applicant No. 3 at its Karol Bagh, New Delhi Branch had sanctioned cash credit limit of Rs. 10.00 Crore vide Sanction Letter dated 01.05.2010. The Defendant no. 1 Company conveyed acceptance of the said sanction vide its letter dated 01.05.2010.

To avail the said facility of Rs. 10.00 Crore, the Defendant no. 1 through Defendant no. 2, by virtue of Resolution passed in the meeting of Board of Directors held on 18.06.2010 and the other defendant executed various loaning / security documents in favour of BOM / Applicant no. 3 herein on individual basis which are as follows:-

- (i) Resolution in the meeting of Board of Directors of Defendant no. 1 Company held on 18.06.2010;

- (ii) Resolution in the meeting of Board of Directors of Defendant no. 5 Company held on 19.06.2010;

- (iii) Resolution in the meeting of Board of Directors of Defendant no. 6 Company held on 19.06.2010;

- (iv) Demand Promissory Note dated 30.08.2010 by Defendant no. 1 Company in favour of Applicant no. 3 Bank for Rs. 10.00 Crore;

- (v) Receipt for amount of loan dated 30.08.2010 by Defendant no. 1 Company in favour of Applicant no. 3 Bank for Rs. 10.00 Crore;

- (vi) Composite Deed of Hypothecation for all facilities dated 30.08.2010;

- (vii) Agreement of Guarantee of Defendants no. 2, 3 & 4 dated 30.08.2010 for Rs. 10.00 Crore;

- (viii) Agreement of Guarantee of Defendant no. 5 dated 30.08.2010;

- (ix) Agreement of Guarantee of Defendant no. 6 dated 30.08.2010.

2.15 On the request of Defendant no. 1 Company, the Assignor Bank of the Applicant Bank from its Karol Bagh New Delhi Branch had sanctioned overdraft credit facility with a limit of Rs. 2000.00 Lakh vide Sanction Letter dated 17.06.2010. It is stated that the copy of the said Sanction Letter was duly acknowledged by Defendant no. 1 on 18.06.2010. Further, Defendants no. 2 to 6 stood as guarantors to secure the repayment of the loan amount granted by the Applicant Banks and undertaken to pay the same.

Subsequently, Karnataka Bank Limited assigned its debt to Applicant no. 4 herein by virtue of Assignment Agreement dated 28.12.2015.

To avail the said facility of Rs. 20.00 Crore, the Defendant no. 1 through Defendant no. 2, by virtue of Resolution passed in the meeting of Board of Directors held on 18.06.2010 and the other defendant executed various loaning / security documents in favour of Karnataka Bank Limited / Applicant no. 4 herein on individual basis. Moreover, the other defendants also executed their guarantees. The details of the loaning / security documents are as follows:-

- (i) Resolution in the meeting of Board of Directors of Defendant no. 1 Company held on 18.06.2010;

- (ii) Resolution in the meeting of Board of Directors of Defendant no. 1 Company held on 19.06.2010;

- (iii) Demand Promissory Note dated 24.08.2010 by Defendant no. 1 Company in favour of Applicant no. 4 Bank for Rs. 20.00 Crore;

- (iv) Letter of Delivery of Demand Promissory Note dated 24.08.2010 by Defendant no. 1 Company in favour of Applicant no. 4 Bank for Rs. 20.00 Crore;

- (v) Agreement of Hypothecation dated 24.08.2010 by Defendant no. 1 Company in favour of Applicant no. 4 Bank for Rs. 20.00 Crore;

- (vi) General Power of Attorney for Book Debts dated 24.08.2010;

- (vii) Agreement of Guarantee of Defendants no. 2, 3 & 4 dated 24.08.2010 for Rs. 20.00 Crore;

- (viii) Copy of Resolution dated 19.06.2010 of Defendant no. 5 Company;

- (ix) Agreement of Guarantee of Defendant no. 5 dated 24.08.2010;

- (x) Copy of Resolution dated 19.06.2010 of Defendant no. 6;

- (xi) Agreement of Guarantee of Defendant no. 6 dated 24.08.2010;

- (xii) Joint Guarantee Letter dated 24.08.2010 of Defendants no. 2 to 6 for Rs. 20.00 Crore in favour of Applicant No. 4 Bank.

2.16 It is stated in the OA that on the request of Defendant no. 1 Company, BOI, PNB, BOM and the Assignor Bank of Applicant no. 4, the lenders to the Company decided to form a consortium of banks for the credit facilities sanctioned to the Defendant no. 1 Company. In the meeting of lenders and Borrower Company held on 03.01.2011, it was agreed to execute joint documentation at the earliest. In pursuance thereto, PNB/Applicant no. 2, BOM/Applicant no. 3 and the Assignor of Applicant No. 4/Karnataka Bank Ltd., executed a Letter of Authority dated 03.02.2011 in favour Applicant no. 1 / BOI, Lead Bank of BOI consortium, c/o New Delhi Mid Corporate Branch, 37, Shaheed Bhagat Singh Marg (near Shivaji Stadium), New Delhi – 110001. Further, an Inter-se Agreement among the aforesaid four banks of the consortium was executed on 03.02.2011

It is also stated that Defendant no. 1 company and other Defendants executed following consortium documents :-

- (i) Working Capital Consortium Agreement dated 03.02.2011 executed by the Defendant no. 1 Company with BOI, limit of Rs. 4500.00 Lakh; PNB, limit of Rs. 2500.00 Lakh; BOM, limit of Rs. 1000.00 Lakh and Karnataka Bank Ltd. (Assignor of Applicant no. 4 herein) limit of Rs. 2000.00 Lakh, total Rs. 10000.00 Lakh;

- (ii) Joint Deed of Hypothecation dated 03.02.2011 executed by Defendant no. 1 Company; 

- (iii) Confirmation and Acknowledgement dated 03.02.2011 of the outstanding indebtedness of Defendant no. 1 Company to (a) BOI for the amount of Rs. 49,42,30,235.20; (b) PNB for the amount of Rs. 35,40,53,516.00; (c) BOM for the amount of Rs. 11,12,72,320.00 and (d) Karnataka Bank Ltd. (Assignor of Applicant no. 4 herein) for the amount of Rs. 20,20,28,909.00 as on 02.02.2011;

- (iv) Letter of Confirmation and Acknowledgment dated 03.02.2011 in respect of security documents and for the purpose of Section 18 of the Indian Limitation Act, 1963 executed by Defendant no. 1 Company;

- (v) Deed of Guarantee dated 03.02.2011 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Des Raj Aggarwal, M/s A.S. Technobuild (P) Ltd. and M/s SSK Trading (P) Ltd. for the total amount of Rs. 100.00 Crore;

- (vi) Letter of Agreement, Undertaking and Assurance dated 03.02.2011 executed by Defendant no. 1 Company in favour of the Bank of India Consortium.

It is stated in the OA that on 03.02.2011, during his visit to NDSME, Peeragarhi Branch of the Applicant no. 1 Bank, Defendant no. 2 in his personal capacity conveyed to the BOI / Applicant no. 1 (acting in its capacity as the Lead Bank of the 'BOI Consortium' consisting of BOI as the Lead Bank and PNB, BOM and Karnataka Bank Ltd. as the Member Banks of the Consortium), his oral assent for extension of the mortgage on his 8 immovable properties already mortgaged in favour of the Bank, as described in earlier Paras and called as property 'A to H' and stated that the same will now secure the aggregate enhanced credit facilities of Rs. 100.00 Crore sanctioned in favour of the Defendant no. 1 Company by the IOB Consortium / other Member Banks of the Consortium.

In this regard, copy of relevant pages pertaining to date 03.02.2011 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 as well as 8 relevant pages of the Recital Register pertaining to date 03.02.2011 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to H' of Mr. Surender Kumar Bansal for credit facilities of Rs. 100,00,00,000/- to M/s Bansal Diamond Pvt. Ltd. have been recorded, are annexed with the OA, Moreover, Mr. Surender Kumar Bansal, in his capacity as a Director of M/s A.S. Techno Build Pvt. Ltd. / Defendant no. 6, pursuant to Resolution passed by the Board of Directors of the Company in the meeting held on 27.01.2011 visited the NDSME branch of Applicant no. 1 Bank on 03.02.2011 and handed over to the Bank title deeds relating to Company's immovable property / ies being (i) all that piece of land with building sheds and structure standing thereon situates at Plot No. 230 and (ii) Plot No. 231 (each 540 Sq. mts.), Commercial Service Centre, Sector – 9, Dwarka, New Delhi – 110075 owned by M/s A.S. Techno Build Pvt. Ltd., with an intent to create security in favour of the Bank of India Consortium by way of equitable mortgage for the due repayment by the Defendant no. 1 Company to the BOI Consortium in the account Limit of Rs. 100,00,00,000/-.

In this regard, copy of relevant pages of the Recital Register pertaining to date 03.02.2011 of the NDSME Branch of applicant no. 1, wherein the recital of the aforesaid 2 immovable properties 'P' & 'J' of M/s Techno Build Pvt. Ltd. for credit facilities of Rs. 100,00,00,000/- to the Defendant no. 1 have been recorded, are annexed with the OA, 2.17 It is stated in the OA that on the request of Defendant no. 1 Company, the four existing member Banks of 'BOI Consortium' reviewed and enhanced the credit facilities. In addition to the existing Lenders, another bank namely Indian Overseas Bank (IOB) / Applicant no. 5 also sanctioned fresh credit facilities of Rs. 30.00 Crore vide Sanction Letter dated 14.12.2011 which was duly accepted by the Borrower / Guarantors (Defendants herein).

To avail the said facility of Rs. 30.00 Crore, the Defendants executed Resolution as well as various loaning / security documents in favour of IOB / Applicant no. 5 herein on individual basis which are as follows:-

- (i) Request Letter dated 06.10.2011 of Defendant no. 1 Company to Applicant no. 5 Bank, requesting to become a member bank for Rs. 30.00 Crore in the Consortium;

- (ii) Resolution in the meeting of Board of Directors of Defendant no. 1 Company held on 15.12.2011;

- (iii) Demand Promissory Note dated 21.12.2011 by Defendant no. 1 Company in favour of Applicant no. 5 bank for Rs. 30.00 Crore;

- (iv) Letter of Continuity dated 21.12.2011 for Rs. 30.00 Crore;

- (v) Letter of Hypothecation dated 21.12.2011 in favour of Applicant no. 5 bank for Rs. 30.00 Crore;

- (vi) Letter of Hypothecation (in case of open advances) dated 21.12.2011

- (vii) Letter of Hypothecation (for securing machineries / vehicles / goods / book debts) dated 21.12.2011;

- (viii) Guarantee of Defendants no. 2, 3 & 4 dated 12.12.2011 for Rs. 30.00 Crore;

- (ix) Guarantee of Defendant no. 5 dated 12.12.2011 for Rs. 30.00 Crore;

- (x) Guarantee of Defendant no. 6 dated 12.12.2011 for Rs. 30.00 Crore.

For executing joint consortium documents for the enhanced facilities, Defendant no. 1 Company submitted to the Consortium Leader / applicant no. 1 a certified copy of the Minutes of the Meeting of the Board of Directors held on 27.01.2012, whereby *inter alia* the aforesaid credit facilities by the Member Banks were accepted and Mr. Surender Kumar Bansal, director was authorized to execute the security documents and to file requisite particulars of charge with the Registrar of Companies.

Further, M/s A.S. Technobuild Pvt. Ltd. / Defendant no. 6 Company also submitted to the bank a certified copy of the Minutes of the Meeting of the Board of Directors held on 27.01.2012, whereby *inter alia* the aforesaid credit facilities by the Member Banks were accepted and Mr. Surender Kumar Bansal, director was authorized to create equitable mortgage by deposit of title deeds with the bank of the company's properties situated at Plot Nos. 230 and 231, Commercial Service Centre, Sector – 9 Dwarka, new Delhi – 110075 as a collateral security for the credit facilities of Rs. 150.00 Crore sanctioned by the consortium of 5 Banks.

Similarly, M/s SSK Trading Pvt. Ltd. / Defendant no. 5 Company also submitted to the bank a certified copy of the Minutes of the Meeting of the Board of Directors held on 27.01.2012, whereby *inter alia* the aforesaid credit facilities by the Member Banks were accepted and Mr. Surender Kumar Bansal, director was authorized to sign the Deed of Guarantee and other requisite documents.

It is further stated in the OA that the Defendant no. 1 Company, Member Banks of the Consortium and other Defendants executed the following consortium documents:-

- (i) Letter of Authority dated 23.02.2012 of PNB, BOM, Karnataka bank Ltd. (Assignor of Applicant no. 4), and IOB in favour of BOI as the Lead Bank of 'BOI Consortium';

- (ii) Inter-se Agreement dated 23.02.2012 between BOI, PNB, BOM, Karnataka bank Ltd. (Assignor of Applicant no. 4), and IOB;

- (iii) Working Capital Consortium Agreement dated 23.02.2012 executed by the Defendant no. 1 Company in favour of BOI as consortium Leader for credit facilities totaling Rs. 150.00 Crore by the Consortium;

- (iv) Joint Deed of Hypothecation dated 23.02.2012 executed by Defendant no. 1 Company for credit facilities totaling Rs. 150.00 Crore by the Consortium;

- (v) Letter of Agreement, Undertaking and Assurance dated 23.02.2012 executed by Defendant no. 1 Company in favour of the BOI Consortium;

- (vi) Revival Letter / Acknowledgment of debts / securities dated 23.02.2012;

- (vii) Confirmation and Acknowledgement of the outstanding indebtedness of Defendant no. 1 Company to (a) BOI for the amount of Rs. 44,98,20,746.60; (b) PNB for the amount of Rs. 34,97,15,128.62; (c) BOM for the amount of Rs. 19,77,20,612.00 (d) Karnataka Bank Ltd. (Assignor of Applicant no. 4 herein) for the amount of Rs. 19,97,71,392.00 and (e) IOB for the amount of Rs. 37,28,94,798.00 as on 22.02.2012;

- (viii) Deed of Guarantee dated 23.02.2012 executed by Defendants no. 2 to 4 i.e. Mr. Surender Kumar Bansal, Ms. Shefali Bansal and Mr. Des Raj Aggarwal for the total amount of Rs. 150.00 Crore;

- (ix) Deed of Guarantee dated 23.02.2012 executed by M/s A.S. Technobuild (P) Ltd. / Defendant no. 6 through its authorized signatory as authorized vide Resolution dated 27.01.2012 passed by the Board of Directors of the Defendant Company in favour of the BOI Consortium for the total amount of Rs. 150.00 Crore;

- (x) Deed of Guarantee dated 23.02.2012 executed by M/s SSK Trading (P) Ltd. / Defendant no. 5 through its authorized signatory as authorized vide Resolution dated 27.01.2012 passed by the Board of Directors of the Defendant Company in favour of the BOI Consortium for the total amount of Rs. 150.00 Crore.

Thereafter, on 15.03.2012, during his visit to NDSME, Peeragarhi Branch of the Applicant no. 1 Bank, Defendant no. 2 in his personal capacity conveyed to the BOI / Applicant no. 1 [acting in its capacity as the Lead Bank of the 'BOI Consortium' consisting of BOI as the Lead Bank and PNB, BOM and Karnataka Bank Ltd. (assignor of Applicant no. 4) and IOB as the Member Banks of the Consortium], his oral assent for extension of the mortgage on his 8 immovable properties already mortgaged in favour of the Bank, as described in earlier Paras and called as property 'A to H' and stated that the same will now secure the aggregate enhanced credit facilities of Rs. 150.00 Crore sanctioned in favour of the Defendant no. 1 Company by the BOI Consortium.

In this regard, copy of relevant pages pertaining to date 15.03.2012 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 as well as 8 relevant pages of the Recital Register pertaining to date 15.03.2012 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to H' of Mr. Surender Kumar Bansal for credit facilities of Rs.

150,00,00,000/- to M/s Bansal Diamond Pvt. Ltd. have been recorded, are annexed with the OA, Moreover, Defendant no. 2, in his capacity as a Director of M/s A.S. Techno Build Pvt. Ltd. / Defendant no. 6, pursuant to Resolution passed by the Board of Directors of the Company in the meeting held on 27.01.2012 orally assented to the Applicant no. 1 Bank continuing to hold the title deeds relating to Defendant no. 6 Company's immovable property / ies being (i) all that piece of land with building sheds and structure standing thereon situates at Plot No. 230 and (ii) Plot No. 231 (each 540 Sq. mts.), Commercial Service Centre, Sector – 9, Dwarka, New Delhi – 110075 owned by Defendant no. 6 Company, with an intent to create security in favour of the Bank of India Consortium by way of equitable mortgage for the due repayment by the Defendant no.1 Company to the BOI Consortium in the account Limit of Rs. 150.00 Crore.

In this regard, copy of relevant pages of the Recital Register pertaining to date 15.03.2012 of the NDSME Branch of applicant no. 1, wherein the recital of the aforesaid 2 immovable properties 'I' & 'J' of Defendant no. 6 for credit facilities of Rs. 150.00 Crore to the Defendant no. 1 have been recorded, are annexed with the OA, 2.18 It is stated in the OA that the Defendant no. 1 Company approached the banks for review cum enhancement of the working capital credit facilities from the consortium of banks with CMA data for the year 2012-13. The Applicant no. 1 Bank sanctioned its share of 25% of the assessment of Rs. 200.00 Crore for the year 2012-13, amounting to Rs. 50.00 Crore and conveyed the same to the Defendant no. 1 Company vide Sanction Letter dated 11.12.2012, a copy whereof was duly acknowledged by the Defendants.

The Defendant no. 1 company submitted to the Consortium Leader / Applicant no. 1 Bank a certified copy of the Minutes of the Meeting of the Board of Directors in the meeting held on 12.12.2012 whereby *inter alia*, the aforesaid credit facilities sanctioned by the Applicant no. 1 Bank were accepted and Mr. Surender Kumar Bansal, Director was authorized to execute the security documents.

Moreover, the Defendant no. 6 also submitted to the Bank a certified copy of the Minutes of the Meeting of the Board of Directors of the company held on 12.12.2012 whereby *inter alia*, Mr. Surender Kumar Bansal, director was authorized to call on the bank and consent for extension of equitable mortgage of immovable property for the additional working capital facilities of Rs. 5.00 Crore extended by the Applicant no. 1 Bank, in addition to the credit facilities of Rs. 45.00 Crore from Applicant no. 1 Bank and Rs. 150.00 Crore from the BOI Consortium, as well as for execution of the guarantee agreement.

Similarly, the Defendant no. 5 company also submitted to the Applicant no. 1 Bank a certified copy of the Minutes of the Meeting of the Board of Directors of the company held on 12.12.2012 whereby *inter alia*, Mr. Surender Kumar Bansal, director was authorized to execute the Guarantee Bond and other security documents.

The Defendant no. 1 Company and other Defendants executed the following loan / security documents in favour of Applicant no. 1 Bank on 13.12.2012, pending sanction by other member Banks and execution of Joint Consortium documents:-

- (i) Demand Promissory Note dated 13.12.2012 for Rs. 5.00 Crore;

- (ii) Multipurpose Agreement dated 13.12.2012 for continuing security and other covenants;

- (iii) Credit Facility Agreement dated 13.12.2012;

- (iv) Agreement of Hypothecation of Plant and Machinery, Stocks and Book-Debts dated 13.12.2012;

- (v) Confirmation and acknowledgment of the outstanding indebtedness of Defendant no. 1 Company to BOI for the amount of Rs. 45,05,69,210.00 as on 12.12.2012, also confirming that the acknowledgment is for the purpose of Section 19 of Limitation Act by the defendants;

- (vi) Deed of Guarantee dated 13.12.2012 executed by all the 5 guarantors / Defendants in favour of Applicant no. 1 Bank for the total amount of Rs. 50.00 Crore.

Thereafter, on 13.12.2012, during his visit to NDSME, Peeragarhi Branch of the Applicant no. 1 Bank, Defendant no. 2 in his personal capacity conveyed to Applicant no. 1 Bank, his oral assent for extension of the mortgage on his 8 immovable properties already mortgaged in favour of the Bank, as described in earlier Paras and called as property `A

to H' for the enhanced credit facilities of Rs. 500.00 Lakh granted to the Defendant no. 1 Company by the Applicant no. 1 Bank.

In this regard, copy of relevant pages pertaining to date 13.12.2012 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 as well as 8 relevant pages of the Recital Register pertaining to date 13.12.2012 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to H' of Defendant no. 2 for enhanced credit facilities of Rs. 500.00 Lakh by Applicant no. 1 Bank, aggregate working capital limit from the BOI Consortium of Rs. 155.00 Crore to Defendant no. 1 Company have been recorded, are annexed with the OA, Moreover, Defendant no. 2, in his capacity as a Director of Defendant no. 6, pursuant to Resolution passed by the Board of Directors of the Company in the meeting held on 12.12.2012 visited the NDSME branch of Applicant no. 1 Bank on 13.12.2012 and orally assented to the Applicant no. 1 Bank continuing to hold the title deeds relating to Defendant no. 6 Company's immovable property / ies being (i) all that piece of land with building sheds and structure standing thereon situates at Plot No. 230 and (ii) Plot No. 231 (each 540 Sq. mts.), Commercial Service Centre, Sector - 9, Dwarka, New Delhi - 110075 owned by Defendant no. 6 Company, with an intent to create security in favour of the Bank of India Consortium by way of equitable mortgage for the due repayment by the Defendant no.1 Company to the Applicant no. 1 Bank the additional / increased limit of Rs. 500.00 Lakh, aggregate limits from BOI Consortium to Rs. 15,500.00 Lakh. .

In this regard, copy of relevant pages of the visit / attendance register of date 13.12.2012 of Applicant no.1 Bank as well as copy of relevant pages of the Recital Register pertaining to date 13.12.2012 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid 2 immovable properties 'I' & 'J' of Defendant no. 6 have been recorded, are annexed with the OA, 2.19 It is stated in the OA that on the request of the Defendant no. 1 company, the Applicant no. 2 renewed the existing credit facility of Rs. 35.00 Crore and conveyed the same vide Sanction Letter dated 29.04.2013.

2.20 It is further stated in the OA that on the request of the Defendant no. 1 company, the Applicant no. 3 sanctioned an additional ad-hoc cash credit limit of Rs. 7.00 Crore in addition to the existing credit facility of Rs. 20.00 Crore, taking the total limit to Rs. 27.00 Crore and conveyed the same vide Sanction Letter dated 24.09.2012.

2.21 It is also stated in the OA that on the request of the Defendant no. 1 company, Karnataka Bank Ltd., the Assignor of Applicant no. 4, sanctioned renewal of overdraft facility with an enhanced limit of Rs. 27.00 Crore from the existing credit facility of Rs. 20.00 Crore and conveyed the same vide Sanction Letter dated 07.01.2013.

2.22 It is stated in the OA that on the request of the Defendant no. 1 company, the Applicant no. 5 also renewed the existing credit facility of Rs. 35.00 Crore and conveyed the same vide Sanction Letter dated 16.03.2013.

2.23 It is further stated in the OA that on the request of the Defendant no. 1 company, the Applicant no. 6 having its Branch at SCO-31, Commercial Complex, HSIIDC Indl. Area, Kundli (Sonepat) – 131028 sanctioned Working Capital Limit of Rs. 20.00 Crore, under consortium arrangement for its share of 10%, with Applicant NO. 1 Bank as the lead Bank, on the terms and conditions mentioned in Sanction Letter dated 15.01.2013 and copy of said Sanction Letter was duly acknowledged and accepted by the Defendant no. 1 Company.

To avail the said facility of Rs. 20.00 Crore from Applicant no. 6, the Defendants passed a Resolution in the meeting of its Board of Directors held on 14.01.2013. Pursuant thereto, the Defendants executed various loaning / security documents in favour of Applicant no. 6 Bank on individual basis which are as follows:-

- (i) Resolution of the meeting of Board of Directors of Defendant no. 1 company held on 14.01.2013;

- (ii) Demand Promissory Note dated 22.01.2013 by Defendant no. 1 Company in favour of Applicant no. 6 bank for Rs. 20.00 Crore;

- (iii) Letter of Continuity dated 22.01.2013 for Rs. 20.00 Crore;

- (iv) Composite Hypothecation Agreement dated 22.01.2013 of Defendant no. 1 Company in favour of Applicant no. 6 bank for the amount of Rs. 20.00 Crore;

- (v) Power of Attorney for collection of bills, book debts and other receivables dated 22.01.2013 in favour of Applicant No. 6 Bank.

- (vi) Charge and Hypothecation of Book Debts – Agreement dated 22.01.2013 of Defendant no. 1 Company in favour of Applicant no. 6 Bank;

- (vii) Guarantee Agreement dated 22.01.2013 of Defendant no. 2 in favour of Applicant No. 6 Bank for Rs. 20.00 Crore;

- (viii) Guarantee Agreement dated 22.01.2013 of Defendant no. 3 in favour of Applicant No. 6 Bank for Rs. 20.00 Crore;

- (ix) Guarantee Agreement dated 22.01.2013 of Defendant no. 5 in favour of Applicant No. 6 Bank for Rs. 20.00 Crore;

- (x) Guarantee Agreement dated 22.01.2013 of Defendant no. 6 in favour of Applicant No. 6 Bank for Rs. 20.00 Crore.

On execution of the aforesaid documents, the Applicant No. 6 started disbursement of the facility in account no. 82831250000177 w.e.f. 29.01.2013.

2.24 It is stated in the OA that on the request of the Defendant no. 1 company, the Applicant no. 7 from its branch at 11/68, First Floor, Shanti Chambers, Pusa Road Branch, New Delhi – 110005 sanctioned Working Capital Limit of Rs. 11.00 Crore, under consortium arrangement for its share of 10%, with Applicant NO. 1 Bank as the lead Bank, on the terms and conditions mentioned in Sanction Letter dated 23.03.2013 and copy of said Sanction Letter was duly acknowledged and accepted by the Defendant no. 1 Company.

It is also stated that on the request of the Defendant no. 1 Company, the assignor of Applicant No. 7 agreed to disburse the sanctioned limit of Rs. 11.0 Crore by executing individual documents prior to execution of the joint consortium documents.

The defendants no. 1, 5 & 6 provided certified copies of the resolutions passed in the meetings of their respective Boards of Directors held on 25.03.2013. Pursuant thereto, the Defendants executed various loaning / security documents in favour of Assignor of Applicant no. 7 which are as follows:-

- (i) Resolution passed by the Board of Directors of Defendant no. 1 company on 25.03.2013;

- (ii) Resolution passed by the Board of Directors of Defendant no. 5 company on 25.03.2013;

- (iii) Resolution passed by the Board of Directors of Defendant no. 6 company on 25.03.2013;

- (iv) Agreement of Loan for overall limit dated 28.03.2013 executed by Defendant no. 1 Company for Rs. 11.00 Crore;

- (v) Agreement of Hypothecation of goods and assets dated 28.03.2013 executed by Defendant no. 1 Company for Rs. 11.00 Crore;

- (vi) Agreement of Pledge dated 28.03.2013 executed by Defendant no. 1 Company for Rs. 11.00 Crore;

- (vii) Letter dated 28.03.2013 regarding grant of individual limits within the overall limit;

- (viii) Deed of Guarantee dated 28.05.2013 issued by Defendant no. 5 for credit facilities of Rs. 11.0 Crore sanctioned to Defendant no. 1 Company;

- (ix) Deed of Guarantee dated 28.05.2013 issued by Defendant no. 6 for credit facilities of Rs. 11.0 Crore sanctioned to Defendant no. 1 Company.

On execution of the aforesaid documents, the assignor of Applicant No. 7 started disbursement of the facility in account no. 65164599172 w.e.f. 29.03.2013.

Subsequently, State Bank of Patiala assigned its debt to Applicant No. 4 by virtue of Assignment Agreement dated 30.12.2015.

2.25 In the above manner, aggregate credit facility of Rs. 200.00 Crore was sanctioned to the Defendant no. 1 Company by the aforesaid Applicants. By addition of two new banks to the existing 'BOI' Consortium of 5 banks, the consortium strength increased to 7.

Defendant no. 1 Company passed a resolution in the meeting of its Board of Directors held on 19.08.2013 for availing the said facility from the consortium of banks and for execution of joint consortium documents.

Defendant no. 6 Company also submitted to the Applicant no. 1 Bank a certified copy of the minutes of the meeting of Board of Directors of the Company held on 19.08.2013 whereby inter alia Mr. Surender Kumar Bansal, Director was authorized to create equitable mortgage by deposits of title deeds with the Applicant No. 1 Bank of the Defendant no. 6 company's properties situated at Plot Nos. 230 and 231 (each of 540 Sq. mts.), Commercial Service Centre, Sector – 9, Dwarka, New Delhi – 110075, as a collateral security for the credit facilities of Rs. 200.00 Crore sanctioned by the consortium as well as for execution of the guarantee deed.

Similarly, Defendant no. 5 Company also submitted to the Applicant no. 1 Bank a certified copy of the minutes of the meeting of Board of Directors of the Company held on 19.08.2013 whereby inter alia Mr. Surender Kumar Bansal, Director was authorized to sign the Deed of Guarantee and other requisite documents.

It is stated in the OA that the Defendant no. 1 Company, Member Banks of the Consortium and other defendants, executed the following consortium documents on 30.08.2013:-

- (i) Letter of Authority dated 30.08.2013 of PNB, BOM, Karnataka bank Ltd., IOB, Syndicate bank and State Bank of Patiala in favour of BOI as the Lead Bank of 'BOI Consortium';

- (ii) Inter-se Agreement dated 30.08.2013 between aforesaid 7 banks;

- (iii) Working Capital Consortium Agreement dated 30.08.2013 executed by the Defendant no. 1 Company in favour of BOI as consortium Leader for credit facilities totaling Rs. 200.00 Crore by the Consortium;

- (iv) Joint Deed of Hypothecation dated 30.08.2013 executed by Defendant no. 1 Company for credit facilities totaling Rs. 200.00 Crore by the Consortium;

- (v) Letter of Agreement, Undertaking and Assurance dated 30.08.2013 executed by Defendant no. 1 Company in favour of the BOI Consortium;

- (vi) Revival Letter / Acknowledgment of debts / securities dated 30.08.2013;

- (vii) Deed of Guarantee dated 30.08.2013 executed by Mr. Surneder Kumar Bansal, Ms. Shefali Bansal and Mr. Des Raj Aggarwal for the total amount of Rs. 200.00 Crore;

- (viii) Deed of Guarantee dated 30.08.2013 executed by M/s A.S. Technobuild (P) Ltd. / Defendant no. 6 through its authorized signatory Sh. Surendra Kumar Bansal, Defendant no. 2 as authorized vide Resolution of Board of Directors of the Company in favour of the BOI Consortium for the total amount of Rs. 200.00 Crore;

- (ix) Deed of Guarantee dated 30.08.2013 executed by M/s SSK Trading (P) Ltd. / Defendant no. 5 through its authorized signatory Sh. Surendra Kumar Bansal, Defendant no. 2, as authorized vide Resolution of Board of Directors of the company, in favour of the BOI Consortium for the total amount of Rs. 200.00 Crore.

Thereafter, on 11.09.2013, during his visit to NDSME, Peeragarhi Branch of the Applicant no. 1 Bank, Sh. Surender Kumar Bansal, in his personal capacity conveyed to the BOI / Applicant no. 1 [acting for itself and on behalf of the 'BOI Consortium'] and orally assented for extension of the mortgage on his 8 immovable properties already mortgaged in favour of the Applicant Bank/s, as described in earlier Paras and called as property 'A to H' and stated that the same will now secure the aggregate enhanced credit facilities of Rs. 200.00 Crore sanctioned in favour of the Defendant no. 1 Company by the BOI Consortium [comprising of 7 banks viz. BOI, PNB, BOM, Assignor of Applicant no. 4 (Karnataka Bank Ltd.), IOB, Syndicate Bank and Assignor of Applicant no. 7 (State Bank of Patialia)].

In this regard, copy of relevant pages pertaining to date 11.09.2013 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 as well as 8 relevant pages of the Recital Register pertaining to date 11.09.2013 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to H' of Mr. Surender Kumar Bansal for credit facilities of Rs. 200,00,00,000/- to M/s Bansal Diamond Pvt. Ltd. have been recorded, are annexed with the OA, Moreover, Mr. Surender Kumar Bansal, in his capacity as a Director of Defendant no. 6 Company, pursuant to Resolution passed by the Board of Directors of the Company in the meeting held on 19.08.2013 visited the NDSME Branch of Applicant no. 1 Bank on 11.09.2013 and orally assented to the Applicant no. 1 Bank continuing to hold the title deeds relating to Defendant no. 6 Company's immovable property / ies being (i) all that piece of land with building sheds and structure standing thereon situates at Plot No. 230 and (ii) Plot No. 231 (each 540 Sq. mts.), Commercial Service Centre, Sector – 9, Dwarka, New Delhi – 110075 owned by M/s A.S. Techno Build Pvt. Ltd., with an intent to create security in favour of the BOI Consortium by way of equitable mortgage for the due repayment by the Defendant no.1 Company to the BOI Consortium [now consisting of 7 Banks viz. BOI, PNB, BOM, Assignor of Applicant no. 4 (Karnataka Bank Ltd.), IOB, Syndicate Bank and Assignor of Applicant no. 7 (State Bank of Patiala)] in the account Limit of Rs. 200.00 Crore.

In this regard, copy of relevant pages of the Recital Register of date 11.09.2013 of the Visit / Attendance Register of the Bank as well as relevant pages of the Recital Register pertaining to date 11.09.2013 of the NDSME Branch of applicant no. 1, wherein the recitals of the mortgage of aforesaid 2 immovable properties 'I' & 'J' of Defendant no. 6 Company for credit facilities of Rs. 200.00 Crore to the Defendant no. 1 have been recorded, are annexed with the OA.

In this manner, the aforesaid 10 immovable properties identified in the OA as property 'A' to 'J' were mortgaged to the "BOI Consortium" for securing the aggregate credit facilities of Rs. 200.00 Crore from the 5 Applicant Banks / Assignor of 2 of the Applicants of the Consortium by extension of existing / continuing mortgages.

2.26 It is stated in the OA that subsequent to the execution of Joint Consortium Documents and extension of mortgages on the mortgaged immovable properties, the Defendant no.1 Company approached Applicant no. 3 Bank for additional credit facilities outside the consortium. On the request of the Defendant no. 1 Company, the Applicant no. 3 enhanced the Cash Credit Limit from Rs. 27.0 Crore to Rs. 33.0 Crore vide Sanction Letter dated 10.01.2014 and copy of same was duly acknowledge and accepted.

To avail the said facility of Rs. 33.0 Crore from Applicant no. 3, the Defendants executed the following loaning and security documents in favour of Applicant No. 3 on individual documents basis :-

- (i) RF 66 3 Composite Deed of Hypothecation for all Facilities dated 25.01.2014;

- (ii) RF 45 Application / Request Letter for making Credit Facility Available dated 25.01.2014;

- (iii) RF 46 & 47 Demand Promissory Note dated 25.01.2014;

- (iv) RF 154 A Guarantee for all credit facilities executed by A.S. Technobuild Pvt. Ltd. dated 25.01.2014;

- (v) RF 154 A Guarantee for all credit facilities executed by SSK Trading Pvt. Ltd. dated 25.01.2014;

- (vi) RF 154 A Guarantee for all credit facilities executed by Ms. Shefali Bansal dated 25.01.2014;

- (vii) RF 154 A Guarantee for all credit facilities executed by Mr. Surender Kumar Bansal dated 25.01.2014.

Further more, Defendant no. 1 Company also submitted to the Applicant no. 3 Bank a certified copy of the minutes of the meeting of Board of Directors of the Defendant no. 1 company held on 10.01.2014 whereby inter alia the Company gave consent for various conditions for availing the Cash Credit limit of Rs. 33.0 Crore for Working Capital 

Facility from Applicant no. 3 [details given in Para 5(5.15) at Page 98-99 of OA].

Similarly, Defendant no. 5 Company also submitted to the Applicant no. 3 Bank a certified copy of the minutes of the meeting of Board of Directors of the company held on 10.01.2014 whereby inter alia the Company gave consent for various conditions for availing the Cash Credit limit of Rs. 33.0 Crore for Working Capital Facility from Applicant no. 3 [details given in Para 5(5.15) at Page 99-100 of OA].

Similarly, Defendant no. 5 Company also submitted to the Applicant no. 3 Bank a certified copy of the minutes of the meeting of Board of Directors of the company held on 10.01.2014 whereby inter alia the Company gave consent for various conditions for availing the Cash Credit limit of Rs. 33.0 Crore for Working Capital Facility from Applicant no. 3 [details given in Para 5(5.15) at Page 99-100 of OA].

Further more, Defendant no. 6 Company submitted to the Applicant no. 3 Bank a certified copy of the minutes of the meeting of Board of Directors of the company held on 10.01.2014 whereby inter alia the Company gave consent for various conditions for availing the Cash Credit limit of Rs. 33.0 Crore for Working Capital Facility from Applicant no. 3 [details given in Para 5(5.15) at Page 100 of OA].

2.27 It is also stated in the OA that subsequent to the execution of Joint Consortium documents and extension of mortgages on the mortgaged immovable properties, the Defendant no. 1 company approached the assignor of Applicant no. 4 also for additional credit facilities outside the consortium. On the request of the Defendant no. 1

Company, the Assignor of Applicant no. 4 sanctioned Working Capital D.P.N. Loan of Rs. 300.00 Lakh vide Sanction Letter dated 11.11.2013 which was duly acknowledged and accepted.

To avail the said facility of Rs. 300.00 Lakh from Assignor of Applicant no. 4, the Defendants executed the following loaning and security documents in favour of assignor of Applicant No. 4 on individual documents basis :-

- (i) Take Delivery Letter dated 11.11.2013 issued by Defendants no. 1 to 6 for the amount of Rs. 3,00,00,000/-;

- (ii) Demand Promissory Note dated 11.11.2013 by Defendants no. 1 to 6 for the amount of Rs. 3,00,00,000/-;

- (iii) Hypothecation Agreement dated 11.11.2013 by Defendants no. 1 to 6 for the amount of Rs. 3,00,00,000/-;

- (iv) General Power of Attorney dated 11.11.2013 executed by Defendants no. 1 to 6 for the amount of Rs. 3,00,00,000/-;

- (v) Guarantee Letter dated 11.11.2013 executed by Defendant no. 4 for the amount of Rs. 3,00,00,000/-;

- (vi) Guarantee Letter dated 11.11.2013 executed by Defendants no. 2 & 3 for the amount of Rs. 3,00,00,000/-;

- (vii) Guarantee Letter dated 11.11.2013 executed by Defendant no. 5 for the amount of Rs. 3,00,00,000/;

(viii) Guarantee Letter dated 11.11.2013 executed by Defendant no. 6 for the amount of Rs. 3,00,00,000/.

2.28 It is stated in the OA that Defendant no. 1 Company vide letter dated 07.02.2014 approached the Applicant no. 1 Bank, the consortium leader to restructure the account by converting the excess drawing of about Rs. 110.0 Crore into WCTL repayable in a period of 5-years after a moratorium of 21-months and also prayed that the interest on WCTL may also be funded for the moratorium period, to be repaid over a period of four weeks.

The queries made by the Applicant no. 1 Bank vide e-mail dated 13.02.2014 were replied by the Company by letter dated 18.02.2014 in which letter Defendant no. 1 Company admitted the outstanding balances in the account with the consortium banks.

The Applicant no. 1 Bank sanctioned the restructuring request and conveyed the same vide Sanction Letter dated 27.03.2014, which contains the various terms and conditions of the restructuring and was duly accepted by the Defendant no. 1.

In order to avail the restructuring package sanctioned by the Applicant no. 1 Bank, the Defendant no. 1 Company passed a Resolution in the meeting of Board of Directors held on 28.03.2014. Further, the Defendants no. 5 & 6 Companies also passed Resolutions in the meeting of their Boards of Directors in the meetings held on 28.03.2014.

For restructuring of its accounts with the Applicant no. 1 Bank pending sanction of restructuring of other banks, the Defendants executed in favour of the Applicant no. 1 Bank on 31.03.2014 the various loaning / security documents for the restructured facilities as detailed hereunder:-

- (i) Demand Promissory Note dated 31.03.2014 for Rs. 23,37,00,000.00;

- (ii) Letter of Continuity cum Undertaking cum Declaration dated 31.03.2014 for Rs. 23,37,00,000.00;

- (iii) Agreement of term loan and hypothecation of movable assets / goods / property / plant & machinery dated 31.03.2014 for Rs. 23,37,00,000.00;

- (iv) Demand Promissory Note dated 31.03.2014 for Rs. 7,94,00,000.00;

- (v) Letter of Continuity cum Undertaking cum Declaration dated 31.03.2014 for Rs. 7,94,00,000.00;

- (vi) Agreement of term loan and hypothecation of movable assets / goods / property / plant & machinery dated 31.03.2014 for Rs. 7,94,00,000.00;

- (vii) Letter of Declaration, Undertaking and Authority dated 31.03.2014 for credit facilities of Rs. 62.95 Crore;

- (viii) Letter of Undertaking dated 31.03.2014 for credit facilities of Rs. 62.95 Crore restructured / granted / renewed / rescheduled and continued by the Applicant no. 1 Bank;

- (ix) Confirmation and Acknowledgement of the outstanding indebtedness for the amounts of Rs. 58,38,47,183.60 in Cash Credit (Hypothecation of Stocks & Book-Debts) account as on 30.03.2014 with further interest / charges due and payable from 27.03.2014;

- (x) Deed of Guarantee dated 31.03.2014 executed by Mr. Surender Kumar Bansal and Ms. Shefali Bansal for the amount of Rs. 62.95 Crore;

- (xi) Deed of Guarantee dated 31.03.2014 executed by M/s SSK Trading Private Ltd. for the amount of Rs. 62.95 Crore;

- (xii) Deed of Guarantee dated 31.03.2014 executed by M/s A.S. Technobuild Private Limited for the amount of Rs. 62.95 Crore.

2.29 It is stated in the OA that the Head Office of the Assignor of Applicant no. 4 considered the request for restructuring the credit facilities to the Defendant no. 1 Company with a limit of Rs. 27.00 Crore vide Letter dated 26.03.2014. A copy of the letter was delivered by the Assignor of Applicant no. 4 to the Defendant no. 1 Company which was duly acknowledged by the Defendant no. 1 Company. For restructuring of the outstanding amounts with the assignor of Applicant no. 4, the Defendants executed the following documents on individual documents basis :-

- (i) Resolution of the meeting of Board of Directors of Defendant no. 1 company held on 27.03.2014;

- (ii) Resolution of the meeting of Board of Directors of Defendant no. 5 held on 27.03.2014;

- (iii) Resolution of the meeting of Board of Directors of Defendant no. 6 held on 27.03.2014;

- (iv) Demand Promissory Note dated 29.03.2014 by Defendant no. 1 Company for Rs. 17,25,00,000/- along with "Take Delivery Letter".

- (v) Hypothecation Agreement dated 29.03.2014 by Defendant no. 1 Company for Rs. 17,25,00,000/-;

- (vi) Term Loan Agreement dated 29.03.2014 by Defendant no. 1 Company for Rs. 12,75,00,000/-;

- (vii) Term Loan Agreement dated 29.03.2014 by Defendant no. 1 Company for Rs. 4,70,00,000/-;

- (viii) Hypothecation Agreement dated 29.03.2014 by Defendant no. 1 Company for Rs. 12,75,00,000/-

- (ix) Hypothecation Agreement dated 29.03.2014 by Defendant no. 1 Company for Rs. 4,70,00,000/-

- (x) General Power of Attorney for Book Debts dated 29.03.2014 by Defendant no. 1 Company for Rs. 17,25,00,000/-;

- (xi) Letter of Guarantee dated 29.03.2014 by Defendants no. 2 & 3 for securing facility of Rs. 12,75,00,000/- granted to Defendant no. 1 Company;

- (xii) Letter of Guarantee dated 29.03.2014 by Defendant no. 4 for securing facility of Rs. 12,75,00,000/- granted to Defendant no. 1 Company;

- (xiii) Letter of Guarantee dated 29.03.2014 by Defendant no. 5 for securing facility of Rs. 12,75,00,000/- granted to Defendant no. 1 Company;

- (xiv) Letter of Guarantee dated 29.03.2014 by Defendant no. 6 for securing facility of Rs. 12,75,00,000/- granted to Defendant no. 1 Company.

2.30 It is stated in the OA that during the intervening period, the Defendant no. 1 Company had approached Assignor of Applicant no. 7 i.e. State Bank of Patiala for Adhoc sanction of credit limit of Rs. 4.00 Crore and the Assignor of Applicant no. 7 had sanctioned Adhoc CC limit of Rs. 4.00 Crore for 90-days vide Sanction Letter dated 23.08.2013 which was duly accepted by the Defendants. It was stipulated in the sanction letter that the facility will be released only after execution of Joint Consortium documents for consortium limit of Rs. 200.00 Crore. After execution of the joint consortium documents on 30.08.2013, individual documents were executed by the Defendants for availing the aforesaid adhoc limit of Rs. 4.00 Crore from the assignor of Applicant no. 7 which are as follows :-

- (i) Resolution of the meeting of Board of Directors of Defendant no. 1 company held on 23.08.2013;

- (ii) Resolution of the meeting of Board of Directors of Defendant no. 5 held on 23.08.2013;

- (iii) Resolution of the meeting of Board of Directors of Defendant no. 6 held on 23.08.2013;

- (iv) Letter dated 23.08.2013 regarding grant of individual limits within the overall limit;

- (v) Agreement of loan for overall limit dated 23.08.2013 executed by Defendant no. 1 company for Rs. 4.00 Crore;

- (vi) Agreement of Hypothecation of goods and assets dated 02.09.2013 executed by Defendant no. 1 Company for Rs. 4.00 Crore;

- (vii) Deed of Guarantee dated 02.09.2013 issued by Defendants no. 2 & 3 for credit facilities of Rs. 4.00 Crore sanctioned to Defendant no. 1 Company;

- (viii) Deed of Guarantee dated 02.09.2013 issued by Defendant no. 5 for credit facilities of Rs. 4.00 Crore sanctioned to Defendant no. 1 Company;

- (ix) Deed of Guarantee dated 02.09.2013 issued by Defendant no. 6 for credit facilities of Rs. 4.00 Crore sanctioned to Defendant no. 1 Company.

Subsequently, in February 2014, on the request of Defendant no. 1 Company, the assignor of Applicant no. 7 converted the adhoc limit of Rs. 4.00 Crore into regular limit and enhanced the FBWC facility from Rs. 11.00 crore to Rs. 15.00 Crore vide Sanction Letter dated 15.02.2014.

2.31 Meanwhile, subsequent to the execution of Joint Consortium documents and extension of mortgages on the mortgaged immovable properties, the Defendant no. 1 Company had approached Applicant no. 5 Bank for additional adhoc credit facility of Rs. 5.00 Crore outside the consortium. On the request of the Defendant no. 1 Company, the Applicant no. 5 sanctioned an additional adhoc facility of Rs. 5.00 Crore. To avail the said adhoc facility of Rs. 5.00 Crore from Applicant no. 5, the Defendants executed the following loaning and security documents in favour of Applicant No. 5 on individual documents basis :-

- (i) Resolution of the meeting of Board of Directors of Defendant no. 1 company held on 24.09.2013;

- (ii) Resolution of the meeting of Board of Directors of Defendant no. 1 company held on 25.09.2013;

- (iii) Demand Promissory Note dated 25.09.2013 executed by Defendant no. 1 Company for Rs. 5.00 Crore in favour of Applicant No. 5 Bank;

- (iv) Letter of Continuity dated 25.09.2013 executed by Defendant no. 1 Company for Rs. 5.00 Crore in favour of Applicant No. 5 Bank;

- (v) Letter of Hypothecation (for securing machineries / vehicles / goods / book debts) dated 25.09.2013 executed by Defendant no. 1 Company for Rs. 5.00 Crore in favour of Applicant No. 5 Bank;

- (vi) Letter of Hypothecation (in case of open advances only) d dated 25.09.2013 executed by Defendant no. 1 Company for Rs. 5.00 Crore in favour of Applicant No. 5 Bank;

- (vii) Letter of Hypothecation to Indian Overseas Bank dated 25.09.2013 executed by Defendant no. 1 Company for Rs. 5.00 Crore in favour of Applicant No. 5 Bank;

- (viii) Guarantee for cash credit etc. dated 25.09.2013 by Defendants no. 2 & 3 in favour of Applicant No. 5 Bank for credit facilities of Rs. 5.00 crore granted to Defendant no. 1 Company;

- (ix) Resolution of the meeting of Board of Directors of Defendant no. 5 held on 24.09.2013;

- (x) Resolution of the meeting of Board of Directors of Defendant no. 5 held on 25.09.2013;

- (xi) Guarantee for cash credit etc. dated 25.09.2013 by Defendant no. 5 in favour of Applicant No. 5 Bank for credit facilities of Rs. 5.00 crore granted to Defendant no. 1 Company;

- (xii) Resolution of the meeting of Board of Directors of Defendant no. 6 held on 24.09.2013;

- (xiii) Resolution of the meeting of Board of Directors of Defendant no. 6 held on 25.09.2013;

- (xiv) Guarantee for cash credit etc. dated 25.09.2013 by Defendant no. 6 in favour of Applicant No. 5 Bank for credit facilities of Rs. 5.00 crore granted to Defendant no. 1 Company;

- (xv) Revival Letter dated 25.09.2013 executed by Defendant no. 1 Company in favour of Applicant No. 5 for credit facility of Rs. 30.0 Crore;

- (xvi) Letter of Acknowledgement and Confirmation executed by Defendant no. 1 Company in favour of Applicant No. 5 for cash credit outstanding of Rs. 35,35,90,192.00 as on 30.09.2013.

2.32 It is stated in the OA that On the request of the Defendant no. 1 Company for restructuring of the outstanding credit facilities, the Assignor of Applicant no. 7 also sanctioned the restructuring package of the Defendant no. 1 and conveyed vide Letter dated 31.03.2014. For restructuring of the outstanding balances, the defendants executed the following documents in favour of (State Bank of Patiala) the Assignor of Applicant No. 7 :-

- (i) Resolution in the meeting of Board of Directors of Defendant no. 1 company held on 31.03.2014;

- (ii) Resolution in the meeting of Board of Directors of Defendant no. 5 held on 31.03.2014;

- (iii) Resolution in the meeting of Board of Directors of Defendant no. 6 held on 31.03.2014;

- (iv) Agreement of Loan for Overall Limit dated 31.03.2014 of Defendant no. 1 company the amount of Rs. 17.33 Crore;

- (v) Agreement of Hypothecation of Goods and Assets dated 31.03.2014 of Defendant no. 1 company for the amount of Rs. 17.33 Crore;

- (vi) Letter regarding grant of Individual Limits within the Overall Limits dated 31.03.2014 of Defendant no. 1 company the amount of Rs. 17.33 Crore;

- (vii) Deed of Guarantee dated 31.03.2014 of Defendant no. 2 in favour of Assignor of Applicant no. 7 for Rs. 17.33 Crore;

- (viii) Deed of Guarantee dated 31.03.2014 of Defendant no. 3 in favour of Assignor of Applicant no. 7 for Rs. 17.33 Crore;

- (ix) Deed of Guarantee dated 31.03.2014 of Defendant no. 4 in favour of Assignor of Applicant no. 7 for Rs. 17.33 Crore;

- (x) Deed of Guarantee dated 31.03.2014 of Defendant no. 6 in favour of Assignor of Applicant no. 7 for Rs. 17.33 Crore.

However, the other four member banks of the consortium did not approve the restructuring of the debt of the company.

2.33 Despite the sanction of the restructuring proposal of the Defendant no. 1 Company by the Applicant no. 1 Bank and the Assignor Banks of Applicants no. 4 & 7, the Defendants no. 1 Company and its promoters / directors failed to comply with the "Pre-Disbursement Terms" of the "Other Conditions" conveyed vide Sanction Letter dated 27.03.2014 of the Applicant no. 1 Bank, the consortium Leader. The Company / promoters / directors also failed to provide additional collateral securities stipulated in the aforesaid Sanction Letter dated 27.03.2014 [details given in Para 5(5.17 (i) & (ii) of the OA]. Due to said non-compliance of the stipulated conditions, the restructuring of the debt of the Defendant no. 1 Company could not be implemented by all the members of the consortium. The Defendant no. 1 Company also failed to provide the corporate guarantee of M/s Sunrise Infratech Private Limited as stipulated in the Sanction Letter.

2.34 It is stated in the OA that the Defendant no. 1 company continued in default with the Applicant banks for servicing of the interest and the accounts of the Defendant no. 1 Company with all the 7 lenders of the consortium continued to be heavily overdrawn in respect of the sanctioned limits.

2.35 A stock audit was got conducted by the Applicant no. 1 Bank. In this regard, the copy of the Report dated 07.01.2014 of M/s Pavan K. Garg & Co., Chartered Accountant is annexed with the OA. As per the Stock Audit Report, the Drawing Power available in the account as on 30.11.2013 was Rs. 13391.11 Lakh, total availment was Rs. 23561.81 Lakh and thus, the excess drawing by the Company was Rs. 101,70.70 Lakh. The outstanding balances in the account of the Defendant No. 1 Company with the Applicant Banks as on 30.11.2013 were :-

<tr> <td>Bank of India</td> <td>Rs. 5567.73 Lakh</td> </tr> <tr> <td>Punjab National Bank</td> <td>Rs. 3541.67 Lakh</td> </tr> <tr> <td>Bank of Maharashtra</td> <td>Rs. 3363.51 Lakh</td> </tr> <tr> <td>Karantaka Bank<br/>(Assignor of Applicant No.<br/>4)</td> <td>Rs. 3034.77 Lakh</td> </tr> <tr> <td>Indian Overseas Bank</td> <td>Rs. 3535.99 Lakh</td> </tr> <tr> <td>Syndicate Bank</td> <td>Rs. 2999.97 Lakh</td> </tr> <tr> <td>State Bank of Patiala<br/>(Assignor of Applicant No.<br/>7)</td> <td>Rs. 1518.17</td> </tr> <tr> <td><b>Total</b></td> <td><b>Rs. 2561.81 Lakh</b></td> </tr> </table>

2.36 Due to default in repayment of principal and interest, in terms of guidelines of RBI, the accounts of the company with all the 7 Banks were classified as Non Performing Asset (NPA) on various dates as stated hereunder:-

<tr> <td>Bank of India</td> <td>On 30.06.2014</td> </tr> <tr> <td>Punjab National Bank</td> <td>On 30.06.2014</td> </tr> <tr> <td>Bank of Maharashtra</td> <td>On 31.05.2014</td> </tr> <tr> <td>Karantaka Bank<br/>(Assignor of Applicant No.<br/>4)</td> <td>On 25.08.2014</td> </tr> <tr> <td>Indian Overseas Bank</td> <td>On 02.05.2014</td> </tr> <tr> <td>Syndicate Bank</td> <td>On 31.03.2014</td> </tr> <tr> <td>State Bank of Patiala<br/>(Assignor of Applicant No.<br/>7)</td> <td>On 31.07.2014</td> </tr> </table>

As stated above, the borrowal accounts of the Defendant no. 1 company having become irregular were classified as NPA and as per the prudential accounting norms of the Reserve Bank of India, the interest accrued thereafter i.e. after the account transferred to NPA category, has been recorded separately in memoranda of Interest, as per the standard practice of each Bank / FI.

On failure of the Defendant no. 1 Company to comply with the terms of sanction of restructuring, the Applicant No. 1 Bank and all the other 6 lender Banks of the consortium continued to request and persuade the Defendant no. 1 through its directors for depositing adequate funds in the accounts for regularizing the same but the Defendants failed to do so. Even after the classification of the accounts of the Defendant no. 1 Company, the Applicants continued to follow up with the Defendants for correcting the irregularities which had caused the accounts to be classified as NPA but the Defendants failed to do so. Accordingly, the accounts of the Defendant no. 1 Company with all the Applicants continued to be in NPA category.

2.37 It is further stated that all the Applicants issued demand notices in terms of Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAES) Act, 2002 as detailed hereunder:-

<thead> <tr> <th>Sr. No.</th> <th>Bank Name</th> <th>Date of Notice</th> <th>Amount Demanded (Rs.)</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Bank of India</td> <td>17.10.2014</td> <td>59,81,16,528.57</td> </tr> <tr> <td>2.</td> <td>Punjab National Bank</td> <td>07.07.2014</td> <td>38,06,39,079.30</td> </tr> <tr> <td>3.</td> <td>Bank of Maharashtra</td> <td>31.05.2014</td> <td>35,64,24,683.00</td> </tr> <tr> <td>4.</td> <td>Karantaka Bank<br/>(Assignor of Applicant No. 4)</td> <td>25.11.2014</td> <td>33,63,33,929.00</td> </tr> <tr> <td>5.</td>

<td>15.09.2014</td> <td>38,81,14,989.00</td> </tr> <tr> <td>6.</td> <td>Syndicate Bank</td> <td>15.09.2014</td> <td>34,08,96,229.44</td> </tr> <tr> <td>7.</td> <td>State Bank of Patiala<br/>(Assignor of Applicant No. 7)</td> <td>02.09.2014</td> <td>16,17,88,128.14</td> </tr> </tbody> </table>


It is also stated that owing to failure of the Defendants to discharge their liabilities within the prescribed period of 60-days, the Authorized Officers of all the Applicants, being secured creditors, took further steps in terms of provisions of the SARFAESI Act and took symbolic possession of all the 10 mortgaged properties of the Defendants no. 1 & 6 on 24.03.2015 by issuing joint Possession Notice dated 24.03.2015.

2.38 It is also stated that the Defendant no. 1 Company had provided to the Applicant no. 1 Bank a copy of the Audit Report dated 06.06.2012 along with balance sheet and profit & loss account as on 31.03.2012 for the financial year 2011-2012. In the said balance sheet, in Notes Forming part of Financial Statements, under the heading of current liabilities (Short Term Borrowings), the outstanding balances in the loan accounts of the Defendant no. 1 Company as on 31.03.2012 have been stated as under, which amounts to acknowledgment of debt :-

<tr> <td>Bank of India</td> <td>Rs. 43,55,36,369.60</td> </tr> <tr> <td>Punjab National Bank</td> <td>Rs. 34,97,68,786.70</td> </tr> <tr> <td>Bank of Maharashtra</td> <td>Rs. 25,01,59,413.06</td> </tr> <tr> <td>Karantaka Bank<br/>(Assignor of Applicant No.<br/>4)</td> <td>Rs. 21,86,33,998.50</td> </tr> <tr> <td>Indian Overseas Bank</td> <td>Rs. 37,29,86,578.00</td> </tr> </table>

In the said Notes, it has been stated, thus accepted and acknowledge that the said Short Term Borrowings, being Secured Loans from banks are "secured against hypothecation of stock, book-debts, personal guarantee of all directors & Desh Raj Agarwal, Corporate Guarantee of SSK Trading Pvt. Ltd. & A.S. Technobuild Pvt. Ltd., Equitable Mortgage of various properties.....".

It is further stated that the Defendant no. 1 Company had provided to the Applicant no. 1 Bank a copy of the Audit Report dated 05.06.2013 along with balance sheet and profit & loss account as on 31.03.2013 for the financial year 2012-2013. In the said balance sheet, in Notes Forming part of Financial Statements, under the heading of current liabilities (Short Term Borrowings), the outstanding balances in the loan accounts of the Defendant no. 1 Company as on 31.03.2013 have been incorporated as under, which amounts to acknowledgment of debt :-

<tr> <td>Bank of India</td> <td>Rs. 50,56,35,502</td> </tr> <tr> <td>Punjab National Bank</td> <td>Rs. 35,31,25,895</td> </tr> <tr> <td>Bank of Maharashtra</td> <td>Rs. 38,57,72,902</td> </tr> <tr> <td>Karantaka Bank<br/>(Assignor of Applicant No. 4)</td> <td>Rs. 27,31,77,790</td> </tr> <tr> <td>Indian Overseas Bank</td> <td>Rs. 30,34,37,441</td> </tr> <tr> <td>Syndicate Bank</td> <td>Rs. 20,21,11,412</td> </tr> <tr> <td>State Bank of Patiala<br/>(Assignor of Applicant No. 7)</td> <td>Rs. 10,52,47,552</td> </tr> </table>

In the said Notes, it has been stated, thus accepted and acknowledge that the said "Loans are secured against hypothecation of stock, book-debts, personal guarantee of all directors & Desh Raj Agarwal, Corporate Guarantee of SSK Trading Pvt. Ltd. & A.S. Technobuild Pvt. Ltd., Equitable Mortgage of various properties.....".

Subsequently, in February 2014, the Defendant no. 1 Company had provided to the Applicant no. 1 Bank a copy of the "unaided and compared from trial balance, a provisional balance sheet and profit & loss account dated 18.02.2014 as on 31.12.2013, for the 9 months period of financial year 2013-2014. In the said balance sheet, in schedules Forming Part of provisional balance sheet, under the heading secured loans, the outstanding balance in the loan accounts of the Applicants as on 31.12.2013 have been incorporated as under, which amounts to acknowledgment of debt :-

<tr> <td>Bank of India</td> <td>Rs. 56,41,27,217.60</td> </tr> <tr> <td>Punjab National Bank</td> <td>Rs. 35,42,16,439.70</td> </tr> <tr> <td>Bank of Maharashtra</td> <td>Rs. 33,41,73,132.06</td> </tr> <tr> <td>Karantaka Bank<br/>(Assignor of Applicant No. 4)</td> <td>Rs. 30,37,39,526.00</td> </tr> <tr> <td>Indian Overseas Bank</td> <td>Rs. 35,80,18,702.00</td> </tr> <tr> <td>Syndicate Bank</td> <td>Rs. 30,36,66,371.32</td> </tr> <tr> <td>State Bank of Patiala<br/>(Assignor of Applicant No. 7)</td> <td>Rs. 14,83,04,132.00</td> </tr> </table>

In the said Notes, it has been stated, thus accepted and acknowledged, in respect of the loans from all the 7 banks that the said loans are "secured against hypothecation of stock, book-debts, personal guarantee of all directors & Desh Raj Agarwal, Corporate Guarantee of SSK Trading Pvt. Ltd. & A.S. Technobuild Pvt. Ltd., Equitable Mortgage of various properties..... on pari passu basis".

2.39 It is stated in the OA that the Applicant no. 1 Bank had got conducted a search with the Registrar of Companies in respect of the charges registered on the assets of the Defendant no. 1 Company and a copy of the search report dated 22.08.2014 submitted by Kumar Piyush & Co. Chartered Accountant is annexed with the OA in which the details of various charges registered with ROC on the assets of Defendant no. 1 Company and modified from time to time have been detailed.

Further, the Defendant no. 5 Company had submitted to the Applicant no. 1 Bank a copy of the Income Tax Return Acknowledgment accompanied by the Annual Report containing the balance sheet and profit & loss account for the financial year 2011-2012. A copy of the said report along with its enclosures is enclosed with the OA. In Note 8 of the Balance Sheet annexed to the IT Return, "Land at Dwarka" valued at Rs. 17,02,00,000/- is included in the list of Tangible Assets.

Similarly, the Defendant no. 6 Company had also submitted to the Applicant no. 1 Bank a copy of the Income Tax Return Acknowledgment accompanied by the Annual Report containing the balance sheet and profit & loss account for the financial year 2011-2012. A copy of the said report along with its enclosures is enclosed with the OA. In the Note on Accounts, Item No. 4.B.3, the amount of year ended balance of unsecured loans from Associate Companies is depicted / accepted / acknowledged as Rs. 1737.49 Lakh and from Key Management personnel is Rs. 883.17 Lakh. As per the Audited Balance Sheet for the same period of Defendant no. 1 Company, the loan given to Defendant no. 6 company is stated as Rs. 5,40,82,500.00, which thus is acknowledged by Defendant no. 6. The key management Personnel of Defendant no. 6 whom unsecured loan of Rs. 883.17 Lakh is stated are the Defendants no. 3 & 4 herein.

2.40 It is stated in the OA that during the course of their dealings with the Applicant no. 1 Bank and while applying for review / enhancement of credit facilities, the Defendants had submitted their individual profiles including details of assets & liabilities in prescribed Form CBD-23 from time to time. Copies of some of these profiles submitted by the A handwritten signature or mark in blue ink, located at the bottom right of the page, next to the page number 74. It appears to be a stylized signature or a set of initials.

Defendants are annexed with the OA as per following table:-

<thead> <tr> <th>Defendant no.</th> <th>Name</th> <th>As on</th> </tr> </thead> <tbody> <tr> <td>2.</td> <td>Surinder Kumar Bansal</td> <td>31.10.2008</td> </tr> <tr> <td>2.</td> <td>Surender Kumar Bansal</td> <td>31.07.2003</td> </tr> <tr> <td>3.</td> <td>Mrs. Shefali Bansal</td> <td>31.10.2008</td> </tr> <tr> <td>3.</td> <td>Mrs. Shefali Bansal</td> <td>31.07.2013</td> </tr> <tr> <td>4.</td> <td>Desh Raj Aggarwal</td> <td>31.10.2008</td> </tr> <tr> <td>4.</td> <td>Desh Raj Aggarwal</td> <td>25.10.2012</td> </tr> <tr> <td>4.</td> <td>Desh Raj Aggarwal</td> <td>14.09.2013</td> </tr> <tr> <td>5.</td> <td>SSK Trading P. Ltd.</td> <td>31.07.2013</td> </tr> <tr> <td>6.</td> <td>A.S. Technobuild P. Ltd.</td> <td>31.07.2013</td> </tr> </tbody> </table>

2.41 It is stated in the OA that with a view to get the accounts of the Defendant no. 1 Company regularized, the Applicants conducted several individual and joint meetings with the Defendant no. 1 Company and its Directors but they have not bothered to regularize their account, which remain in NPA category and the applicant banks have to recover huge amounts from the Borrower.

Since, the Defendants no. 1 to 6 failed to maintain financial discipline nor they paid the dues of the Applicant Banks no. 1 to 7. Hence, the Applicant Banks / FIs no. 1 to 7 have been compelled to file this Application before this Tribunal for recovery of Rs. 313,91,41,957.86 along with interest etc. as per following table :-

<thead> <tr> <th>Applicant Bank(s)</th> <th>Amount Due<br/>as on 29.02.2016</th> </tr> </thead> <tbody> <tr> <td>Applicant No. 1 /<br/>Bank of India</td> <td>Rs. 76,68,86,650.20</td> </tr> <tr> <td>Applicant No. 2 /<br/>Punjab National Bank</td> <td>Rs. 49,93,56,352.30</td> </tr> <tr> <td>Applicant No. 3 /<br/>Bank of Maharashtra</td> <td>Rs. 45,69,99,925.00</td> </tr> </tbody> </table>

<table border="1"> <tr> <td>Applicant No. 4 /<br/>Phoenix ARC Pvt. Ltd.</td> <td>Rs. 42,18,77,703.00</td> </tr> <tr> <td>Applicant No. 5 /<br/>Indian Overseas Bank</td> <td>Rs. 49,47,40,102.89</td> </tr> <tr> <td>Applicant No. 6 /<br/>Syndicate Bank</td> <td>Rs. 29,63,58,387.19</td> </tr> <tr> <td>Applicant No. 7 /<br/>Phoenix ARC Pvt. Ltd.</td> <td>Rs. 20,29,22,837.28</td> </tr> </table>

Details of respective amount(s) due to Applicants no. 1 to 7 have been given in Para 5(5.26) of the OA.

3. Notices of this O.A. were issued to the Defendants no. 1 to 6 and these Defendants appeared through Counsel. Thereafter, Defendants no. 1 to 6 filed their WS(s) as mentioned below:-

- (i) Defendants no. 1 & 2 filed their common WS;

- (ii) Defendant no. 3, 5 & 6 filed their common WS;

- (iii) Defendant no. 4 filed his separate WS.

3.1 Record reveals that all the Defendants no. 1 to 6 have taken similar pleas in their respective WS(s) which are as follows:-

- (i) Defendants no. 1 to 6 have raised an objection that the instant OA is bad in law for mis-joinder of parties and mis-joinder of causes of action and has been presented without payment of proper court fees. It is stated that this OA has been filed jointly by seven applicants who have separate causes of action and are required to seek leave of this Hon'ble Tribunal as per the provisions of Section 19 of RDB Act before joining an OA on payment of appropriate court fees. Hence, this 

OA is liable to be dismissed on these grounds alone.

- (ii) Defendants no. 1 to 6 have also taken a plea that the Applicant has not provided the certified and complete original Statement of Account along with the OA in respect of Credit Facility allegedly availed of by the Defendant no. 1. It is stated that the claim of the Applicant is highly excessive and contrary to law and can't be granted. Moreover, the same is false, incorrect and contrary to law. Further, the rates of interest as claimed in this OA is an absence of specification of rate of interest stipulated from time to time. It is also stated that the Statement of Account does not contain the necessary break up as per the Judgment of Hon'ble Supreme Court in the case of *Central Bank of India Vs. Ravindra*. The IT Certificates annexed to the OA are not in accordance with the provisions of the Information Technology Act, 2000 and/or the Banker's Book Evidence Act, 1891.

- (iii) Next objection raised by Defendants no. 1 to 6 is that the persons who have signed and verified the OA does not have lawful and valid authority to do so. Thus, the institution of OA is bad in law and as such same deserves to be dismissed with costs;

- (iv) Defendants no. 1 to 6 have also taken a plea that the claims of Applicants no. 1 to 7 in the OA are barred by limitation as can also be ascertained from the alleged loan documents.

- (v) Next objection raised by Defendants no. 1 to 6 is that the Firm M/s Bansal Diamonds is not a party to the present OA and as such loan allegedly granted by the Applicant no. 1 to the said Firm cannot be considered in the present OA.

- (vi) Defendants no. 1 to 6 have also taken a plea that the alleged Loan Documents especially the guarantee agreements are not stamped as per law rather executed on expired stamp papers and as such not enforceable.

- (vii) Defendants no. 1 to 6 have denied the alleged mortgages of properties 'A' to 'J' as well as Attendance / Recital Register etc.

- (viii) Next objection raised by Defendants no. 1 to 6 is that the alleged guarantees are blanks at many places and do not even contain the names of the alleged guarantors. Thus, these defendants completely deny the execution, legality and validity of the said documents.

- (ix) Defendants no. 1 to 6 have also taken a plea that the alleged Assignment by Karnataka Bank in favour of Applicant No. 4 is illegal and without the knowledge and consent of these Defendants and these defendants are discharged by unilateral variance in the terms of alleged contract by Karnataka Bank. It is also stated that the alleged assignment agreement is not stamped and registered as per law and does not transfer the alleged underlying securities with it in favour of Applicant No. 4.

- (x) Next objection of Defendants no. 1 to 6 is that the alleged balance confirmation letter(s) are not supported by Statement of Accounts for the relevant periods.

- (xi) Defendants no. 1 to 6 have also raised an objection that the alleged corporate guarantee of Defendants no. 5 & 6 is not backed by board resolution.

- (xii) Next plea taken by Defendants no. 1 to 6 is that admittedly, the Defendant no. 4 has not executed any guarantee for the alleged loan granted by Applicant no. 6, therefore, it stood discharged by unilateral variance in terms of the contract. Similar contention is raised for the loan allegedly granted by the assignor of the Applicant No. 7. It is stated that the Defendants no. 2 to 4 have not executed any guarantee for the alleged loan of Rs. 11.0 Crore allegedly granted by Applicant no. 7, therefore, stood discharged under the law of contact from all the liabilities as sureties, if at all it existed. Moreover, it is also alleged that Defendant no. 4 is not a guarantor for the alleged consortium documents and as such stood discharged from the alleged liabilities of the Applicant No. 3, if at all it existed, on account of novation in terms of contract and under various other provisions of Contract Act pertaining to law of security. Same contentions are adopted by these defendants in respect of the alleged loan / documents of Rs. 20.0 Crore allegedly granted by the assignor of Applicant No. 4 outside the consortium as are taken by these defendants in respect of the alleged loan of Rs. 33.0 crore of Applicant no. 3 as aforesaid.

- (xiii) Defendants no. 1 to 6 have taken a plea that the alleged assignment deed executed by Assignor (State Bank of Patiala) in favour of Applicant no. 7 is without the consent and authority of these defendants resulting into discharge of these defendants. Further, the said agreement is not stamped and registered as per law and does not carry with it underlying securities.

In the light of above, it has been prayed to dismiss this OA with costs.

4. To prove their case, the Applicant Bank No. 1 / BOI leads its evidence by filling the affidavit of Sh. Munshi Lal, Senior Manager of the Applicant bank. Subsequently, previous AR of Applicant No. 1 Bank was substituted with Sh. Shamsher Singh Lahoria, Chief Manager who also led Evidence by way of Affidavit.

Thus, Sh. Shamsher Singh Lahoria, Officer of Applicant Bank No. 1 / BOI has placed reliance upon various documents viz.:-

- (i) Power of Attorney dated 25.09.2014 of Applicant no. 1 in favour of the deponent (Ex. AW-1/1);

- (ii) Request letter dated 03.10.2006 of M/s Bansal Diamonds to Applicant no. 1 Bank for granting Cash Credit Facility of Rs. 600.00 Lakh (Ex. AW-1/2);

- (iii) Sanction Letter dated 09.11.2006 of Applicant no. 1 Bank which was accepted by M/s Bansal Diamonds and its guarantors (Ex. AW-1/3);

- (iv) Demand Promissory Note dated 15.11.2006 for Rs. 5.0 Crore (Ex. AW-1/4);

- (v) Letter of Continuity cum Undertaking cum Declaration for Rs. 5.0 Crore dated 15.11.2006 (Ex. AW-1/5);

- (vi) Agreement of Hypothecation of Tangible Movable property for Rs. 5.0 Crore (Ex. AW-1/6);

- (vii) Deed of Guarantee dated 15.11.2006 executed by Mr. Manoj Jain and Mr. Des Raj, in favour of the Applicant no. 1 Bank for an amount of Rs. 5.0 Crore (Ex. AW-1/7);

- (viii) Demand Promissory Note dated 15.11.2006 for Rs. 1.0 Crore (Ex. AW-1/8);

- (ix) Letter of Continuity cum Undertaking cum Declaration for Rs. 1.0 Crore dated 15.11.2006 executed by M/s Bansal Diamonds and the two guarantors (Ex. AW-1/9);

- (x) Agreement of Charge and Hypothecation of Book Debts for Rs. 1.0 Crore (Ex. AW-1/10);

- (xi) Deed of Guarantee dated 15.11.2006 executed by Mr. Manoj Jain and Mr. Des Raj, in favour of the Applicant no. 1 Bank for an amount of Rs. 1.0 Crore (Ex. AW-1/11);

- (xii) Declaration Re : Hypothecation of stocks / Book-Debts dated 15.11.2006 (Ex. AW-1/12);

- (xiii) Declaration / Undertaking for creation of Equitable Mortgage executed by Mr. Surinder Kumar Bansal (Ex. AW-1/13);

- (xiv) Title Deeds / Documents / Writings in respect of Property 'A' (Ex. AW-1/14 & AW-1/15);

- (xv) Title Deeds / Documents / Writings in respect of Property 'B' (Ex. AW-1/16-colly & AW-1/17);

- (xvi) Title Deeds / Documents / Writings in respect of Property 'C' (Ex. AW-1/18);

- (xvii) Title Deeds / Documents / Writings in respect of Property 'D' (Ex. AW-1/19-colly & Mark - 'A');

- (xviii) Title Deeds / Documents / Writings in respect of Property 'E' (Ex. AW-1/20 to AW-1/22);

- (xix) Copy of relevant pages of the Visit Register as well as Recital Register of the NDSME Branch for applicant no. 1 branch for dated 22.06.2007 (wherein the oral assent conveyed by Mr. Surinder Kumar Bansal was recorded) for five immovable properties 'A' to 'E' (Ex. AW-1/23 & AW-1/24 respectively);

- (xx) Demand Promissory Note dated 26.09.2007 for Rs. 3.0 Crore (Ex. AW-1/25);

- (xxi) Agreement of Hypothecation to secure demand Loan / cash Credit dated 26.09.2007 (Ex. AW-1/26);

- (xxii) Letter of Continuity-cum-undertaking cum declaration for Rs. 3.0 Crore dated 26.09.2007 executed by M/s Bansal Diamonds and the two guarantors (Ex. AW-1/27);

- (xxiii) Deed of Guarantee dated 26.09.2007 executed by Mr. Manoj Jain and Mr. Des Raj, in favour of the 

Applicant no. 1 Bank for an amount of Rs. 3.0 Crore (Ex. AW-1/28);

- (xxiv) copy of relevant pages of the Visit Register as well as Recital Register of the NDSME Branch for applicant no. 1 branch for dated 26.09.2007 (wherein the oral assent conveyed by Mr. Surinder Kumar Bansal was recorded for immovable properties 'A' to 'E') (Ex. AW-1/29 & AW-1/30);

- (xxv) certified copy of Memorandum of Association and the Articles of Association of the said Company with Certificate of Incorporation dated 10.09.2007 furnished to the Bank by Bansal Diamonds Pvt. Ltd. (Mark-'B');

- (xxvi) Sanction Letter dated 01.12.2007 of Applicant no. 1 Bank which was duly accepted by Defendant no. 1 and other Directors / Guarantors (Ex. AW-1/31);

- (xxvii) Demand Promissory Note dated 03.12.2007 for Rs. 1600.00 Lakh (Ex. AW-1/32);

- (xxviii) Multipurpose Loan documents dated 03.12.2007 for Rs. 1600.00 Lakh signed by M/s Bansal Diamonds Pvt. Ltd., through its Director Mr. Surendera Kumar Bansal, and also by other Director Ms. Shefali Bansal and Guarantors (Ex. AW-1/33);

- (xxix) Demand Promissory Note dated 03.12.2007 for Rs. 500.00 Lakh (Ex. AW-1/34);

- (xxx) Multipurpose Loan documents dated 03.12.2007 for Rs. 500.00 Lakh signed by M/s Bansal Diamonds Pvt. Ltd., through its Director Mr.

Surendera Kumar Bansal, and also by other Director Ms. Shefali Bansal and Guarantors (Ex. AW-1/35);

- (xxxii) Agreement of Hypothecation dated 03.12.2007 of Plant and Machinery, Stock and Book Debts for the credit facilities of Cash Credit (Stocks) of Rs. 1600.00 Lakh and Cash Credit (Book Debts) of Rs. 500.00 Lakh (Ex. AW-1/36);

- (xxxii) Credit Facility Agreement dated 03.12.2007 for Fund Based Facilities of Rs. 1600.00 Lakh (Ex. AW-1/37);

- (xxxiii) Deed of Guarantee dated 03.12.2007 executed by Mr. Des Raj, Mr. Manoj Jain, Ms. Shefali Bansal and Mr. Surender Kumar Bansal for the amount of Rs. 1600.00 Lakh (Ex. AW-1/38);

- (xxxiv) Letter of Declaration / Undertaking / Assurance dated 03.12.2007 executed by Mr. Surender Kumar Bansal that he will create equitable mortgage of commercial property consisting of one shop at Ground Floor, Gold Plaza, Gurudwara Road, Karol Bagh, New Delhi latest by 15.03.2008 (Ex. AW-1/39);

- (xxxv) Title Deeds / documents / writings in respect of Property 'A' (Ex. AW-1/40 & AW-1/41);

- (xxxvi) Title Deeds / documents / writings in respect of Property 'B' (Ex. AW-1/42-colly & AW-1/43-colly);

- (xxxvii) Title Deeds / documents / writings in respect of Property 'C' (Ex. AW-1/44);

- (xxxviii) Title Deeds / documents / writings in respect of Property 'D' (Ex. AW-1/45-colly & AW-1/46); 

- (xxxix) Title Deeds / documents / writings in respect of Property 'E' (Ex. AW-1/47);

- (xl) Title Deeds / documents / writings in respect of Property 'F' (Ex. AW-1/48-colly & AW-1/49);

- (xli) copy of relevant pages of the Visit Register (Ex. AW-1/49) as well as Recital Register of the NDSME Branch for applicant no. 1 branch for dated 03.12.2007 (wherein the oral assent conveyed by Mr. Surinder Kumar Bansal was recorded for properties 'A' to 'F') (Ex. AW-1/51 to AW-1/56);

- (xlii) Request letter dated 03.12.2007 of Defendant no. 1 (Ex. AW-1/57);

- (xliii) Form 8 filed by Defendant no. 1 for creating charge on its assets in favour of the Applicant no. 1 Bank for the amount of Rs. 1600.0 Lakh which was registered with the ROC as well as Charge Certificate (Ex. AW-1/58-colly);

- (xliv) copy of the certified copy of an Extract from the minutes of meeting of the Board of Directors of Defendant no. 1 held on 22.01.2008 (Ex. AW-1/59);

- (xlv) Demand Promissory Note dated 09.02.2008 for Rs. 3,75,00,000/- (Ex. AW-1/60);

- (xlvi) Credit Facility Agreement dated 09.02.2008 for the amount of Rs. 1975.00 Lakh (Ex. AW-1/61);

- (xlvii) Supplemental Deed of Hypothecation dated 09.02.2008 for Rs. 1975.00 Lakh (Ex. AW-1/62);

- (xlviii) Letter dated 09.02.2008 of continuity cum undertaking cum declaration (Ex. AW-1/63);

- (xlix) Deed of Guarantee dated 09.02.2008 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Manoj Jain and Mr. Des Raj Aggarwal (Ex. AW-1/64);

- (l) copy of relevant pages pertaining to date 09.02.2008 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 (Ex. AW-1/65) as well as six relevant pages of the Recital Register pertaining to date 09.02.2008 of the NDSME Branch for applicant no. 1 are relevant (Ex. AW-1/66 to AW-1/71);

- (li) Title Deeds / documents / writings pertaining the property 'G' (Ex. AW-1/72);

- (lii) copy of relevant pages pertaining to date 20.02.2008 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 (Ex. AW-1/73) as well as relevant page of the Recital Register pertaining to date 20.02.2008 of the NDSME Branch for applicant no. 1 (Ex. AW-1/74) with regard to property 'G';

- (liii) Demand Promissory Note dated 20.10.2008 for Rs. 4,00,00,000/- (Ex. AW-1/75);

- (liv) Supplemental Deed of Hypothecation dated 20.10.2008 (Ex. AW-1/76);

- (lv) Letter of continuing cum undertaking cum declaration dated 20.10.2008 for Rs. 4,00,00,000/- (Ex. AW-1/77);

- (lvi) Confirmation and Acknowledgement of the outstanding indebtedness dated 20.10.2008 for the amounts of Rs. 10,89,28,100.09 and Rs.

4,98,32,890/- as on 18.10.2008 with further interest from 22.09.2008 (Ex. AW-1/78);

(lvii) Deed of Guarantee dated 20.10.2008 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Manoj Jain and Mr. Des Raj Aggarwal for the amount of Rs. 20,00,00,000/- (Ex. AW-1/79);

(lviii) Certified true copy of an extract from the minutes of a meeting of the Board of Directors of Defendant no. 1 Company held on 20.10.2008 (Ex. AW-1/80);

(lix) copy of relevant pages pertaining to date 20.10.2008 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 (Ex. AW-1/81) as well as relevant pages of the Recital Register pertaining to date 20.10.2008 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to G' have been recorded (Ex. AW-1/82 to AW-1/88);

(lx) Sanction Letter dated 22.12.2008 of Applicant no. 1 which was duly accepted by the Defendants (Ex. AW-1/89);

(lxi) Demand Promissory Note dated 24.12.2008 for Rs. 14,00,00,000/- (Ex. AW-1/90);

(lxii) Letter of continuity cum undertaking cum declaration dated 24.12.2008 for Rs. 30,00,00,000/- (Ex. AW-1/91);

(lxiii) Demand Promissory Note dated 24.12.2008 for Rs. 4,00,00,000/- (Ex. AW-1/92);

- (lxiv) Letter of continuity cum undertaking cum declaration dated 24.12.2008 for Rs. 9,00,00,000/- (Ex. AW-1/93);

- (lxv) Supplemental Deed of Hypothecation dated 24.12.2008 for Rs. 30,00,00,000/- (Ex. AW-1/94);

- (lxvi) Credit Facility Agreement dated 24.12.2008 for Rs. 30,00,00,000/- (Ex. AW-1/95);

- (lxvii) Deed of Guarantee dated 24.12.2008 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Manoj Jain and Mr. Des Raj Aggarwal for the amount of Rs. 3000.00 Lakh (Ex. AW-1/96);

- (lxviii) Confirmation and acknowledgment of the outstanding indebtedness dated 24.12.2008 for the amounts of Rs. 14,99,98,306.09, Rs. 4,99,99,99,645/-, Rs. 24,41,840/- and Rs. 6,81,644 as on 22.12.2008 (Ex. AW-1/97);

- (lxix) copy of relevant pages pertaining to date 24.12.2008 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 (Ex. AW-1/98) as well as the relevant pages of the Recital Register pertaining to date 24.12.2008 of the NDSME Branch for applicant no. 1 (wherein the recital of the mortgage of the properties 'A to G' have been recorded) (Ex. AW-1/99 to AW-1/105);

- (lxx) Copy relevant page of the Recital Register pertaining to dated 24.12.2008 of the NDSME Peeragarhi Branch of Applicant no. 1, wherein the recital of mortgage of the property 'H' has been recorded (Ex. AW-1/106);

- (lxxi) Title deeds / documents / writings for the property 'H' (Ex. AW-1/107-colly and AW-1/108);

- (lxxii) Sanction Letter dated 30.01.2009 of Applicant no. 1 Bank duly accepted by the Defendants (Ex. AW-1/109);

- (lxxiii) Demand Promissory Note dated 30.01.2009 for adhoc amount of Rs. 6,00,00,000/- (Ex. AW-1/110);

- (lxxiv) Letter of continuity cum undertaking cum declaration dated 30.01.2009 for total amount of Rs. 3600.00 Lakh (Ex. AW-1/111);

- (lxxv) Credit Facility Agreement dated 30.01.2009 for the amount of Rs. 3600.00 Lakh (Ex. AW-1/112);

- (lxxvi) Supplemental Deed of Hypothecation 30.01.2009 for Rs. 36,00,00,000/- (Ex. AW-1/113);

- (lxxvii) Confirmation and Acknowledgement dated 30.01.2009 of the outstanding indebtedness for the amounts of Rs. 20,86,41,238.89 in Cash Credit (Hyp. Of Stock) and Rs. 8,99,97,512 in Cash Credit (Hyp. Of Book Debts) as on 29.01.2009 with further interest due and payable from 27.01.2009 (Ex. AW-1/114);

- (lxxviii) Deed of Guarantee dated 30.01.2009 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Manoj Jain, Mr. Des Raj Aggarwal and M/s SK trading Pvt. Ltd. for the amount of Rs. 3600.00 Lakh (Ex. AW-1/115);

- (lxxix) Declaration / Undertaking dated 30.01.2009 by M/s Bansal Diamonds Pvt. Ltd., the Defendant no. 1 company that it shall get created equitable mortgage of vacant commercial plot at Sector 9, Plot No. 232 (admeasuring 540 sq. mts.) Dwarka, New Delhi, in the name of SSK Trading Pvt. Ltd. of value 3610.78 Lakh latest by 15.02.2009 (Ex. AW-1/116);

- (lxxx) Declaration / Undertaking dated 30.01.2009 by M/s SSK Trading Pvt. Ltd. / Defendant no. 5 Company that it shall create equitable mortgage of vacant commercial plot at Sector 9, Plot No. 232 (admeasuring 540 sq. mts.) Dwarka, New Delhi, in the name of SSK Trading Pvt. Ltd. of value 3610.78 Lakh latest by 15.02.2009 (Ex. AW-1/117)

- (lxxxix) copy of relevant pages pertaining to date 30.01.2009 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 (Ex. AW-118) as well as 8 relevant pages of the Recital Register pertaining to date 30.01.2009 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to H' of Mr. Surender Kumar Bansal have been recorded (Ex. AW-1/119 to AW-1/126);

- (lxxxii) Sanction Letter dated 06.03.2010 issued by the Applicant no. 1 duly accepted by the Defendants (Ex. AW-1/127);

- (lxxxiii) certified copy of an extract from minutes of a meeting of Board of Directors of the Defendant no. 1 company held on 08.03.2010 (Ex. AW-1/128);

- (lxxxiv) Demand Promissory Note dated 12.03.2010 for Rs. 1,50,00,000/- (Ex. AW-1/129);

- (lxxxv) Letter of continuity cum undertaking cum declaration dated 12.03.2010 for maximum of Rs. 3750.00 Lakh (Ex. AW-1/130);

- (lxxxvi) Supplemental Deed of Hypothecation 12.03.2010 for the enhanced aggregate limits of Rs. 37,50,00,000/- (Ex. AW-1/131);

- (lxxxvii) Deed of Guarantee dated 12.03.2010 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Manoj Jain, Mr. Des Raj Aggarwal for the amount of Rs. 37,50,00,000/- (Ex. AW-1/132);

- (lxxxviii) copy of relevant pages pertaining to date 12.03.2010 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 (Ex. AW-1/133) as well as 8 relevant pages of the Recital Register pertaining to date 12.03.2010 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to H' of Mr. Surender Kumar Bansal have been recorded (Ex. AW-1/134 to AW-1/141);

- (lxxxix) Sanction Letter dated 06.03.2010 of Applicant no. 1 duly accepted by the Defendants (Ex. AW-1/142);

- (xc) certified copy of an extract from minutes of a meeting of Board of Directors of the Defendant no. 1 company held on 05.04.2010 (Ex. AW-1/143);

- (xci) certified copy each of an extract form minutes of their meetings of Board of Directors of M/s SSK Trading Pvt. Ltd. and M/s A.S. Technobuild Pvt. Ltd. (Defendants no. 5 & 6 respectively) held on 05.04.2010 (Ex. AW-1/144 & AW-1/145);

- (xcii) Demand Promissory Note dated 09.04.2010 for Rs. 13,00,00,000/- (Ex. AW-1/146);

- (xciii) Letter of continuity cum undertaking cum declaration dated 09.04.2010 for the amount of Rs. 13,00,00,000/- taking the total amount of Cash Credit Hypothecation of Stock to Rs. 23,00,00,000/- (Ex. AW-1/147);

- (xciv) Credit Facility Agreement dated 09.04.2010 for the amount of Rs. 4500.00 Lakh (Ex. AW-1/148);

- (xcv) Supplemental Deed of Hypothecation 09.04.2010 for aggregate Rs. 45,00,00,000/- (Ex. AW-1/149);

- (xcvi) Confirmation and acknowledgment dated 09.04.2010 of the outstanding indebtedness for the amounts of Rs. 28,40,36,491.80 in Cash Credit (Hyp. Of Stocks) and Rs. 8,99,65,260/- in Cash Credit (Hyp. Of Book Debts) as on 08.04.2010 with further interest due and payable from 29.03.2010 (Ex. AW-1/150);

- (xcvii) Deed of Guarantee dated 09.04.2010 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Des Raj Aggarwal, M/s A.S. Technobuild Pvt. Ltd. and M/s SSK Trading Pvt. Ltd. for the amount of Rs. 45,00,00,000/- (Ex. AW-1/151);

- (xcviii) copy of relevant pages pertaining to date 09.04.2010 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 (Ex. AW-1/152) as well as 8 relevant pages of the Recital Register pertaining to date 09.04.2010 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A

to H' of Mr. Surender Kumar Bansal for credit facilities of Rs. 4500.00 Lakh to M/s Bansal Diamond Pvt. Ltd. have been recorded (Ex. AW-1/153 to AW-1/160);

- (xcix) copy of relevant pages of the Recital Register pertaining to date 09.04.2010 of the NDSME Branch of applicant no. 1, wherein the recital of the aforesaid 2 immovable properties 'I' & 'J' of M/s Techno Build Pvt. Ltd. for credit facilities of Rs. 4500.00 Lakh to M/s Bansal Diamond Pvt. Ltd. have been recorded (Ex. AW-1/161 & AW-1/162);

- (c) Title deeds / documents / writings for the property 'I' deposited by Mr. Suriender Kumar Bansal (Ex. AW-1/163 to AW-1/168);

- (ci) Title deeds / documents / writings for the property 'I' deposited by Mr. Suriender Kumar Bansal (Ex. AW-1/163 to AW-1/174);

- (cii) Form 8 filed by Defendant no. 1 Company with ROC, New Delhi for modification of charge on the assets of the borrower Company in favour of the Applicant no. 1 Ban enhancing the amount of charge to Rs. 45.0 Crore (Ex. AW-1/175);

- (ciii) Minute of the meeting of lenders and Borrower Company held on 03.01.2011 (Ex. AW-1/176);

- (civ) Letter of Authority dated 03.02.2011 executed by PNB/Applicant no. 2, BOM/Applicant no. 3 and the Assignor of Applicant No. 4/Karnataka Bank Ltd. in favour Applicant no. 1 / BOI, Lead Bank of BOI consortium (Ex. AW-1/177);

- (cv) Inter-se Agreement dated 03.02.2011 executed among the aforesaid four banks of the consortium (Ex. AW-1/178);

- (cvi) Working Capital Consortium Agreement dated 03.02.2011 executed by the Defendant no. 1 Company with (a) BOI, limit of Rs. 4500.00 Lakh; (b) PNB, limit of Rs. 2500.00 Lakh; (c) BOM, limit of Rs. 1000.00 Lakh and (d) Karnataka Bank Ltd. (Assignor of Applicant no. 4 herein) limit of Rs. 2000.00 Lakh, total Rs. 10000.00 Lakh (Ex. AW-1/179);

- (cvii) Joint Deed of Hypothecation dated 03.02.2011 executed by Defendant no. 1 Company (Ex. AW-1/180);

- (cviii) Confirmation and Acknowledgement dated 03.02.2011 of the outstanding indebtedness of Defendant no. 1 Company to (a) BOI for the amount of Rs. 49,42,30,235.20; (b) PNB for the amount of Rs. 35,40,53,516.00; (c) BOM for the amount of Rs. 11,12,72,320.00 and (d) Karnataka Bank Ltd. (Assignor of Applicant no. 4 herein) for the amount of Rs. 20,20,28,909.00 as on 02.02.2011 (Ex. AW-1/181);

- (cix) Letter of Confirmation and Acknowledgment dated 03.02.2011 in respect of security documents and for the purpose of Section 18 of the Indian Limitation Act, 1963 executed by Defendant no. 1 Company (Ex. AW-1/182);

- (cx) Deed of Guarantee dated 03.02.2011 executed by Mr. Surender Kumar Bansal, Ms. Shefali Bansal, Mr. Des Raj Aggarwal, M/s A.S. Technobuild (P)

Ltd. and M/s SSK Trading (P) Ltd. for the total amount of Rs. 100.00 Crore (Ex. AW-1/183);

(cxii) Letter of Agreement, Undertaking and Assurance dated 03.02.2011 executed by Defendant no. 1 Company in favour of the Bank of India Consortium (Ex. AW-1/184);

(cxii) copy of relevant pages pertaining to date 03.02.2011 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 (Ex. AW-1/185) as well as 8 relevant pages of the Recital Register pertaining to date 03.02.2011 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to H' of Mr. Surender Kumar Bansal for credit facilities of Rs. 100,00,00,000/- to M/s Bansal Diamond Pvt. Ltd. have been recorded (Ex. AW-1/186 to AW-1/193);

(cxiii) copy of relevant pages of the Recital Register pertaining to date 03.02.2011 of the NDSME Branch of applicant no. 1, wherein the recital of the aforesaid 2 immovable properties 'I' & 'J' of M/s Techno Build Pvt. Ltd. for credit facilities of Rs. 100,00,00,000/- to the Defendant no. 1 have been recorded (Ex. AW-1/194 & AW-1/195);

(cxiv) Certified copy of the Board Resolution dated 27.01.2012 passed by Defendant no. 1 Company (Ex. AW-1/196);

(cxv) Certified copy of the Board Resolution dated 27.01.2012 passed by Defendant no. 6 Company (Ex. AW-1/197);

- (cxvi) Certified copy of the Board Resolution dated 27.01.2012 passed by Defendant no. 5 Company (Ex. AW-1/198);

- (cxvii) Letter of Authority dated 23.02.2012 of PNB, BOM, Karnataka bank Ltd. (Assignor of Applicant no. 4), and IOB in favour of BOI as the Lead Bank of BOI Consortium (Ex. AW-1/199);

- (cxviii) Inter-se Agreement dated 23.02.2012 between BOI, PNB, BOM, Karnataka bank Ltd. (Assignor of Applicant no. 4), and IOB (Ex. AW-1/200);

- (cxix) Working Capital Consortium Agreement dated 23.02.2012 executed by the Defendant no. 1 Company in favour of BOI as consortium Leader for credit facilities totaling Rs. 150.00 Crore by the Consortium (Ex. AW-1/201);

- (cxx) Joint Deed of Hypothecation dated 23.02.2012 executed by Defendant no. 1 Company for credit facilities totaling Rs. 150.00 Crore by the Consortium (Ex. AW-1/202);

- (cxxi) Letter of Agreement, Undertaking and Assurance dated 23.02.2012 executed by Defendant no. 1 Company in favour of the BOI Consortium (Ex. AW-1/203);

- (cxxii) Revival Letter / Acknowledgment of debts / securities dated 23.02.2012 (Ex. AW-1/204);

- (cxxiii) Confirmation and Acknowledgement of the outstanding indebtedness of Defendant no. 1 Company to (a) BOI for the amount of Rs. 44,98,20,746.60; (b) PNB for the amount of Rs. 34,97,15,128.62; (c) BOM for the amount of Rs. 19,77,20,612.00 (d) Karnataka Bank Ltd.

(Assignor of Applicant no. 4 herein) for the amount of Rs. 19,97,71,392.00 and (e) IOB for the amount of Rs. 37,28,94,798.00 as on 22.02.2012 (Ex. AW-1/205);

(cxxiv) Deed of Guarantee dated 23.02.2012 executed by Defendants no. 2 to 4 i.e. Mr. Surender Kumar Bansal, Ms. Shefali Bansal and Mr. Des Raj Aggarwal for the total amount of Rs. 150.00 Crore (Ex. AW-1/206);

(cxxv) Deed of Guarantee dated 23.02.2012 executed by M/s A.S. Technobuild (P) Ltd. / Defendant no. 6 through its authorized signatory as authorized vide Resolution dated 27.01.2012 passed by the Board of Directors of the Defendant Company in favour of the BOI Consortium for the total amount of Rs. 150.00 Crore (Ex. AW-1/207);

(cxxvi) Deed of Guarantee dated 23.02.2012 executed by M/s SSK Trading (P) Ltd. / Defendant no. 5 through its authorized signatory as authorized vide Resolution dated 27.01.2012 passed by the Board of Directors of the Defendant Company in favour of the BOI Consortium for the total amount of Rs. 150.00 Crore (Ex. AW-1/208);

(cxxvii) copy of relevant pages pertaining to date 15.03.2012 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 (Ex. AW-1/209) as well as 8 relevant pages of the Recital Register pertaining to date 15.03.2012 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to H' of Mr. Surender Kumar Bansal for credit facilities of Rs. 150,00,00,000/- to M/s Bansal Diamond Pvt. Ltd. have been recorded (Ex. AW-1/210 to AW-1/217);

- (cxxviii) copy of relevant pages of the Recital Register pertaining to date 15.03.2012 of the NDSME Branch of applicant no. 1, wherein the recital of the aforesaid 2 immovable properties 'I' & 'J' of Defendant no. 6 for credit facilities of Rs. 150.00 Crore to the Defendant no. 1 have been recorded (Ex. AW-1/218 & 219);

- (cxxix) Sanction Letter dated 11.12.2012 issued by the Applicant no. 1 Bank whereby it sanctioned its share of 25% of the assessment of Rs. 200.00 Crore for the year 2012-13, amounting to Rs. 50.00 Crore duly acknowledged by the Defendants (Ex. AW-1/220);

- (cxxx) Certified copy of Resolution dated 12.12.2012 of Defendant no. 1 Company submitted to the consortium leader / applicant no. 1 Bank (Ex. AW-1/221);

- (cxxxii) Certified copy of Resolution dated 12.12.2012 of Defendant no. 6 Company (Ex. AW-1/222);

- (cxxxiii) Certified copy of Resolution dated 12.12.2012 of Defendant no. 5 Company (Ex. AW-1/223);

- (cxxxiiii) Demand Promissory Note dated 13.12.2012 for Rs. 5.00 Crore (Ex.-1/224);

- (cxxxv) Multipurpose Agreement dated 13.12.2012 for continuing security and other covenants (Ex.-1/225);

- (cxxxvi) Credit Facility Agreement dated 13.12.2012 (Ex.-1/226);

- (cxxxvi) Agreement of Hypothecation of Plant and Machinery, Stocks and Book-Debts dated 13.12.2012 (Ex.-1/227);

- (cxxxvii) Confirmation and acknowledgment of the outstanding indebtedness of Defendant no. 1 Company to BOI for the amount of Rs. 45,05,69,210.00 as on 12.12.2012, also confirming that the acknowledgment is for the purpose of Section 19 of Limitation Act by the defendants (Ex.-1/228);

- (cxxxviii) Deed of Guarantee dated 13.12.2012 executed by all the 5 guarantors / Defendants in favour of Applicant no. 1 Bank for the total amount of Rs. 50.00 Crore (Ex.-1/229);

- (cxxxix) copy of relevant pages pertaining to date 13.12.2012 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 (Ex.-1/230) as well as 8 relevant pages of the Recital Register pertaining to date 13.12.2012 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to H' of Defendant no. 2 for enhanced credit facilities of Rs. 500.00 Lakh by Applicant no. 1 Bank, aggregate working capital limit from the BOI Consortium of Rs. 155.00 Crore to Defendant no. 1 Company have been recorded (Ex.-1/231 to 238);

- (cxl) copy of relevant pages of the visit / attendance register of date 13.12.2012 of Applicant no.1 Bank (Ex.-1/239) as well as copy of each of the relevant pages of the Recital Register pertaining to date 13.12.2012 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid 2 immovable properties 'I' & 'J' of Defendant no. 6 have been recorded (Ex.-1/240 & AW-1/241);

- (cxli) Certified copy of the Board Resolution dated 19.08.2013 passed by Defendant no. 1 Company (Ex. AW-1/242);

- (cxlii) Certified copy of the minutes of the meeting of Board of Directors of the Defendant no. 6 Company held on 19.08.2013 submitted to the Applicant no. 1 Bank (Ex. AW-1/243);

- (cxliii) Certified copy of the minutes of the meeting of Board of Directors of the Defendant no. 5 Company held on 19.08.2013 submitted to the Applicant no. 1 Bank (Ex. AW-1/244);

- (cxliv) Letter of Authority dated 30.08.2013 of PNB, BOM, Karnataka bank Ltd., IOB, Syndicate bank and State Bank of Patiala in favour of BOI as the Lead Bank of 'BOI Consortium' (Ex. AW-1/245);

- (cxlv) Inter-se Agreement dated 30.08.2013 between aforesaid 7 banks (Ex. AW-1/246);

- (cxlvi) Working Capital Consortium Agreement dated 30.08.2013 executed by the Defendant no. 1 Company in favour of BOI as consortium Leader for credit facilities totaling Rs. 200.00 Crore by the Consortium (Ex. AW-1/247);

- (cxlvii) Joint Deed of Hypothecation dated 30.08.2013 executed by Defendant no. 1 Company for credit facilities totaling Rs. 200.00 Crore by the Consortium (Ex. AW-1/248);

- (cxlviiii) Letter of Agreement, Undertaking and Assurance dated 30.08.2013 executed by Defendant no. 1 Company in favour of the BOI Consortium (Ex. AW-1/249);

- (cxlix) Revival Letter / Acknowledgment of debts / securities dated 30.08.2013 (Ex. AW-1/250);

- (cl) Deed of Guarantee dated 30.08.2013 executed by Mr. Surneder Kumar Bansal, Ms. Shefali Bansal and Mr. Des Raj Aggarwal for the total amount of Rs. 200.00 Crore (Ex. AW-1/251);

- (cli) Deed of Guarantee dated 30.08.2013 executed by M/s A.S. Technobuild (P) Ltd. / Defendant no. 6 through its authorized signatory Sh. Surendra Kumar Bansal, Defendant no. 2 as authorized vide Resolution of Board of Directors of the Company in favour of the BOI Consortium for the total amount of Rs. 200.00 Crore (Ex. AW-1/252);

- (clii) Deed of Guarantee dated 30.08.2013 executed by M/s SSK Trading (P) Ltd. / Defendant no. 5 through its authorized signatory Sh. Surendra Kumar Bansal, Defendant no. 2, as authorized vide Resolution of Board of Directors of the company, in favour of the BOI Consortium for the total amount of Rs. 200.00 Crore (Ex. AW-1/253);

- (cliiii) copy of relevant pages pertaining to date 11.09.2013 of the Visit Register of the NDSME Peeragarhi Branch of Applicant no. 1 (Ex. AW-1/254) as well as 8 relevant pages of the Recital Register pertaining to date 11.09.2013 of the NDSME Branch of applicant no. 1, wherein the recital of the mortgage of aforesaid properties 'A to H' of Mr. Surender Kumar Bansal for credit facilities of Rs. 200,00,00,000/- to M/s Bansal Diamond Pvt. Ltd. have been recorded (Ex. AW-1/255 to AW-1/262);

- (cliv) copy of relevant pages of the Recital Register of date 11.09.2013 of the Visit / Attendance Register of the Bank (Ex. AW-1/263) as well as relevant pages of the Recital Register pertaining to date 11.09.2013 of the NDSME Branch of applicant no. 1, wherein the recitals of the mortgage of 2 immovable properties 'I' & 'J' of Defendant no. 6 Company for credit facilities of Rs. 200.00 Crore to the Defendant no. 1 have been recorded (Ex. AW-1/264 & AW-1/265);

- (clv) Request Letter dated 07.02.2014 of Defendant no. 1 requesting the Applicant no. 1 Bank (the consortium leader) to restructure the account by converting the excess drawing of about Rs. 110.0 Crore into WCT (Ex. AW-1/266);

- (clvi) Letter dated 18.02.2014 of Defendant no. 1 (to the queries made by the Applicant no. 1 Bank vide e-mail dated 13.02.2014) by which the Defendant no. 1 Company admitted the outstanding balances in the account with the consortium banks (Ex. AW-1/267);

- (clvii) Sanction Letter dated 27.03.2014 issued by Applicant no. 1 which contains the various terms and conditions of the restructuring and was duly accepted by the Defendant no. 1 (Ex. AW-1/268);

- (clviii) Certified true copy of the extracts of the minutes of the meeting of Board of Directors of Defendant no. 1 Company held on 28.03.2014 (Ex. AW-1/269);

- (clix) Certified true copy of the extracts of the minutes of the meeting of Board of Directors of Defendant no. 5 Company held on 28.03.2014 (Ex. AW-1/270);

- (clx) Certified true copy of the extracts of the minutes of the meeting of Board of Directors of Defendant no. 1 Company held on 28.03.2014 (Ex. AW-1/271);

- (clxi) Demand Promissory Note dated 31.03.2014 for Rs. 23,37,00,000.00 (Ex. AW-1/272);

- (clxii) Letter of Continuity cum Undertaking cum Declaration dated 31.03.2014 for Rs. 23,37,00,000.00 (Ex. AW-1/273);

- (clxiii) Agreement of term loan and hypothecation of movable assets / goods / property / plant & machinery dated 31.03.2014 for Rs. 23,37,00,000.00 (Ex. AW-1/274);

- (clxiv) Demand Promissory Note dated 31.03.2014 for Rs. 7,94,00,000.00 (Ex. AW-1/275);

- (clxv) Letter of Continuity cum Undertaking cum Declaration dated 31.03.2014 for Rs. 7,94,00,000.00 (Ex. AW-1/276);

- (clxvi) Agreement of term loan and hypothecation of movable assets / goods / property / plant & machinery dated 31.03.2014 for Rs. 7,94,00,000.00 (Ex. AW-1/277);

- (clxvii) Letter of Declaration, Undertaking and Authority dated 31.03.2014 for credit facilities of Rs. 62.95 Crore (Ex. AW-1/278);

- (clxviii) Letter of Undertaking dated 31.03.2014 for credit facilities of Rs. 62.95 Crore restructured / granted / renewed / rescheduled and continued by the Applicant no. 1 Bank (Ex. AW-1/279);

- (clxix) Confirmation and Acknowledgement of the outstanding indebtedness for the amounts of Rs. 58,38,47,183.60 in Cash Credit (Hypothecation of Stocks & Book-Debts) account as on 30.03.2014 with further interest / charges due and payable from 27.03.2014 (Ex. AW-1/280);

- (clxx) Deed of Guarantee dated 31.03.2014 executed by Mr. Surender Kumar Bansal and Ms. Shefali Bansal for the amount of Rs. 62.95 Crore (Ex. AW-1/281);

- (clxxi) Deed of Guarantee dated 31.03.2014 executed by M/s SSK Trading Private Ltd. for the amount of Rs. 62.95 Crore (Ex. AW-1/282);

- (clxxii) Deed of Guarantee dated 31.03.2014 executed by M/s A.S. Technobuild Private Limited for the amount of Rs. 62.95 Crore (Ex. AW-1/283);

- (clxxiii) copy of the Audit Report dated 07.01.2014 of M/s Pavan K. Garg & Co., Chartered Accountant (Ex. AW-1/284);

- (clxxiv) Office copy of demand notices 17.10.2014, issued in terms of Section 13(2) of the SARFAESI Act 2002 by Applicant No. 1 Bank to the Defendants (Ex. AW-1/288-colly);

- (clxxv) Copy of the Joint Possession Notice dated 24.03.2015 issued by the Applicants (Ex. AW-1/286);

- (clxxvi) copy of the Audit Report dated 06.06.2012 along with balance sheet and profit & loss account as on 31.03.2012 for the financial year 2011-2012 provided by the Defendant no. 1 to the Applicant No. 1 Bank (Ex. AW-1/287);

- (clxxvii) copy of the Audit Report dated 05.06.2013 along with balance sheet and profit & loss account as on 31.03.2013 for the financial year 2012-2013 provided by the Defendant no. 1 to the Applicant No. 1 Bank (Ex. AW-1/288);

- (clxxviii) copy of the "unaided and compared from trial balance, a provisional balance sheet and profit & loss account dated 18.02.2014 as on 31.12.2013, for the 9 months period of financial year 2013-2014 provided by the Defendant no. 1 to the Applicant No. 1 Bank in February 2014 (Ex. AW-1/289);

- (clxxix) copy of the search report dated 22.08.2014 submitted by Kumar Piyush & Co. Chartered Accountant got conducted by the Applicant No. 1 Bank (Ex. AW-1/290);

- (clxxx) copy of the Income Tax Return Acknowledgment accompanied by the Annual Report containing the balance sheet and profit & loss account for the financial year 2011-2012 submitted by the Defendant no. 6 Company to the Applicant no. 1 Bank (Ex. AW-1/291);

- (clxxxii) Individual profiles of Defendants no. 2 to 6 including details of assets & liabilities in prescribed Form CBD-23 submitted by them from time to time from time to time (Mark-'C' to 'K');

- (clxxxii) Statement of Account starting from 01.04.2013 duly certified under the Banker's Books of Evidence Act along with statement of calculation of accrued /. Uncharged interest (Ex. AW-1/292-colly);

- (clxxxiii) Copy of detailed statement demonstrating the bifurcation of recovered amount (received from sale of secured assets) among the applicant bank / consortium members (Ex. AW-1/293);

- (clxxxiv) Copy of detailed statement demonstrating the bifurcation of recovered amount towards rent (received from Tenants of one of the secured asset situated at Dwarka, Delhi) among the applicant consortium members (Ex. AW-1/294).

4.1 To prove their case, the Applicant Bank No. 2 / PNB leads its evidence by filling the affidavit of Sh. Prashant Gupta, Senior Manager of the Applicant bank. Subsequently, due to substitution of earlier AR, Applicant No. 2 Bank again filed its evidence by way of Affidavit of Sh. Rakesh Kumar, Chief Manager of the Applicant Bank.

Officer(s) of Applicant Bank No. 2 have placed reliance upon following documents:-

- (i) Authority Letter dated 27.05.2019 executed by Zonal Manager of the Applicant No. 2 in favour of the Deponent (Ex. AW-2/1);

- (ii) Sanction Letter dated 19.08.2010 issued by the Applicant No. 2 Bank duly accepted by the Defendants (Ex. AW-2/2);

- (iii) Resolution in the meeting of Board of Directors of Defendant no. 1 Company held on 18.08.2010 (Ex. AW-2/3);

- (iv) Resolution in the meeting of Board of Directors of Defendant no. 1 Company held on 19.08.2010 (Ex. AW-2/4);

- (v) Agreement of Hypothecation of goods and book debts to secure Cash Credit Facility dated 01.09.2010 (Ex. AW-2/5);

- (vi) Agreement of Hypothecation of current assets dated 01.09.2010 (Ex. AW-2/6);

- (vii) Agreement of Hypothecation of moveable assets forming part of fixed / block assets dated 01.09.2010 (Ex. AW-2/7);

- (viii) Agreement of Guarantee of Defendants no. 2, 3 & 4 dated 01.09.2010 (Ex. AW-2/8);

- (ix) Agreement of Guarantee of Defendant no. 5 dated 01.09.2010 (Ex. AW-2/9);

- (x) Agreement of Guarantee of Defendant no. 6 dated 01.09.2010 (Ex. AW-2/10);

- (xi) Letter dated 27.08.2010 from Bank of India / Applicant no. 1 ceding pari passu charge (Ex. AW-2/11);

- (xii) Letter dated 31.08.2010 addressed to Applicant no. 1 ceding pari passu charge (Ex. AW-2/12);

- (xiii) Letter dated 01.09.2010 of Applicant no. 2 addressed to Applicant no. 1 Bank requesting for extending charge of mortgage (Ex. AW-2/13);

- (xiv) Sanction Letter dated 29.04.2013 issued by Applicant Bank no. 2 renewing the existing credit facility of Rs. 35.00 Crore (Ex. AW-2/14);

- (xv) Office copy of Demand Notice dated 07.07.2014 issued u/s 13(2) of SARFAESI Act by the Applicant Bank no. 2 to the Defendants (Ex. AW-2/15-colly);

- (xvi) Statement of Account starting from 01.04.2013 duly certified under the Banker's Book of Evidence Act along with Statements of Calculation of accrued uncharged interest (Ex. AW-2/16-colly).

4.2 To prove their case, the Applicant Bank No. 3 / BOM leads its evidence by filling the affidavit of Sh. Swapan Kumar Saha, Assistant General Manager of Applicant No. 3.

Sh. S.K. Saha, Officer of Applicant Bank no. 3 has placed reliance upon the following documents viz. :-

- (i) Power of Attorney executed by Applicant Bank no. 3 in favour of the deponent (Ex. AW-3/1);

- (ii) Sanction Letter dated 01.05.2010 issued by the Applicant Bank no. 1 (Ex. AW-3/2);

- (iii) Letter dated 01.05.2010 of Defendant no. 1 whereby it conveyed acceptance of the aforesaid sanction (Ex. AW-3/3);

- (iv) Resolution in the meeting of Board of Directors of Defendant no. 1 Company held on 18.06.2010 (Ex. AW-3/4);

- (v) Resolution in the meeting of Board of Directors of Defendant no. 5 Company held on 19.06.2010 (Ex. AW-3/5);

- (vi) Resolution in the meeting of Board of Directors of Defendant no. 6 Company held on 19.06.2010 (Ex. AW-3/6);

- (vii) Demand Promissory Note dated 30.08.2010 by Defendant no. 1 Company in favour of Applicant no. 3 Bank for Rs. 10.00 Crore (Ex. AW-3/7);

- (viii) Receipt for amount of loan dated 30.08.2010 by Defendant no. 1 Company in favour of Applicant no. 3 Bank for Rs. 10.00 Crore (Ex. AW-3/8);

- (ix) Composite Deed of Hypothecation for all facilities dated 30.08.2010 (Ex. AW-3/9);

- (x) Agreement of Guarantee of Defendants no. 2, 3 & 4 dated 30.08.2010 for Rs. 10.00 Crore (Ex. AW-3/10);

- (xi) Agreement of Guarantee of Defendant no. 5 dated 30.08.2010 (Ex. AW-3/11);

- (xii) Agreement of Guarantee of Defendant no. 6 dated 30.08.2010 (Ex. AW-3/12);

- (xiii) Sanction Letter dated 24.09.2012 of Applicant No. 3 for additional ad-hoc cash credit limit of Rs. 7.0 Crore (Ex. AW-3/13);

- (xiv) Letter dated 17.08.2013 of Applicant Bank no. 3 whereby the ad-hoc limit was regularized and conveyed which was duly accepted (Ex. AW-3/14);

- (xv) Sanction Letter dated 10.01.2014 of Applicant Bank no. 3 enhancing the Cash Credit Limit from Rs. 27.0 Crore to Rs. 33.0 Crore which was duly acknowledged and accepted (Ex. AW-3/15);

- (xvi) RF 66 3 Composite Deed of Hypothecation for all Facilities dated 25.01.2014 (Ex. AW-3/16);

- (xvii) RF 45 Application / Request Letter for making Credit Facility Available dated 25.01.2014 (Ex. AW-3/17);

- (xviii) RF 46 & 47 Demand Promissory Note dated 25.01.2014 (Ex. AW-3/18);

- (xix) RF 154 A Guarantee for all credit facilities executed by A.S. Technobuild Pvt. Ltd. dated 25.01.2014 (Ex. AW-3/19);

- (xx) RF 154 A Guarantee for all credit facilities executed by SSK Trading Pvt. Ltd. dated 25.01.2014 (Ex. AW-3/20);

- (xxi) RF 154 A Guarantee for all credit facilities executed by Ms. Shefali Bansal dated 25.01.2014 (Ex. AW-3/21);

- (xxii) RF 154 A Guarantee for all credit facilities executed by Mr. Surender Kumar Bansal dated 25.01.2014 (Ex. AW-3/22);

- (xxiii) certified copy of the minutes of the meeting of Board of Directors of the Defendant no. 1 company held on 10.01.2014 submitted to Applicant Bank no. 3 (Ex. AW-3/23);

- (xxiv) certified copy of the minutes of the meeting of Board of Directors of the Defendant no. 5 company held on 10.01.2014 submitted to Applicant Bank no. 3 (Ex. AW-3/24);

- (xxv) certified copy of the minutes of the meeting of Board of Directors of the Defendant no. 6

company held on 10.01.2014 submitted to Applicant Bank no. 3 (Ex. AW-3/25);

- (xvii) Office copy of Demand Notice dated 31.05.2014 issued u/s 13(2) of SARFAESI Act by the Applicant Bank no. 3 to the Defendants (Ex. AW-3/26-colly);

- (xviii) Copy of Joint Possession Notice dated 24.03.2015 issued by the Applicant Banks under SARFAESI Act (Mark-'A');

- (xix) Statement of Account duly certified under the Banker's Book of Evidence Act along with Statements of Calculation of accrued uncharged interest (Ex. AW-3/27-colly).

4.3 To prove their case, the Applicant Bank No. 4 / Phoenix ARC Private Limited leads its evidence by filing the affidavit of Ms. Janhavi Mane, Manager of Applicant.

Ms. Janhavi Mane, office of Applicant Bank no. 4 has placed reliance upon following documents:-

- (i) Board Resolution of the Applicant dated 07.05.2025 in favour of the Deponent (Ex. AW-4/1);

- (ii) Sanction Letter dated 17.06.2010 issued by Assignor (Karnataka Bank) of Applicant no. 4 duly acknowledged by Defendant no. 1 on 18.06.2010 (Ex. AW-4/2);

- (iii) Assignment Agreement dated 28.12.2015 executed between Karnataka bank and Applicant no. 4 herein whereby Karnataka Bank Limited assigned its debt to Applicant no. 4 herein (Ex. AW-4/3);

- (iv) Resolution in the meeting of Board of Directors of Defendant no. 1 Company held on 18.06.2010 (Ex. AW-4/4);

- (v) Resolution in the meeting of Board of Directors of Defendant no. 1 Company held on 19.06.2010 (Ex. AW-4/5);

- (vi) Demand Promissory Note dated 24.08.2010 by Defendant no. 1 Company in favour of Applicant no. 4 Bank for Rs. 20.00 Crore (Ex. AW-4/6);

- (vii) Letter of Delivery of Demand Promissory Note dated 24.08.2010 by Defendant no. 1 Company in favour of Applicant no. 4 Bank for Rs. 20.00 Crore (Ex. AW-4/7);

- (viii) Agreement of Hypothecation dated 24.08.2010 by Defendant no. 1 Company in favour of Applicant no. 4 Bank for Rs. 20.00 Crore (Ex. AW-4/8);

- (ix) General Power of Attorney for Book Debts dated 24.08.2010 (Ex. AW-4/9);

- (x) Agreement of Guarantee of Defendants no. 2, 3 & 4 dated 24.08.2010 for Rs. 20.00 Crore (Ex. AW-4/10);

- (xi) Copy of Resolution dated 19.06.2010 of Defendant no. 5 Company (Ex. AW-4/11);

- (xii) Agreement of Guarantee of Defendant no. 5 dated 24.08.2010 (Ex. AW-4/12);

- (xiii) Copy of Resolution dated 19.06.2010 of Defendant no. 6 (Ex. AW-4/13);

- (xiv) Agreement of Guarantee of Defendant no. 6 dated 24.08.2010 (Ex. AW-4/14);

- (xv) Joint Guarantee Letter dated 24.08.2010 of Defendants no. 2 to 6 for Rs. 20.00 Crore in favour of Applicant No. 4 Bank (Ex. AW-4/15);

- (xvi) Sanction Letter dated 07.01.2013 of Karnataka Bank Ltd., the Assignor of Applicant no. 4 (Ex. AW-4/16);

- (xvii) Assignment Agreement dated 28.12.2015 whereby Karnataka Bank Limited assigned its debt to Applicant No. 4 (Ex. AW-4/17);

- (xviii) Sanction Letter dated 11.11.2013 issued by Assignor of Applicant no. 4 sanctioning Working Capital D.P.N. Loan of Rs. 300.00 Lakh which duly acknowledged and accepted (Ex. AW-4/18);

- (xix) Take Delivery Letter dated 11.11.2013 issued by Defendants no. 1 to 6 for the amount of Rs. 3,00,00,000/- (Ex. AW-4/19);

- (xx) Demand Promissory Note dated 11.11.2013 by Defendants no. 1 to 6 for the amount of Rs. 3,00,00,000/- (Ex. AW-4/20);

- (xxi) Hypothecation Agreement dated 11.11.2013 by Defendants no. 1 to 6 for the amount of Rs. 3,00,00,000/- (Ex. AW-4/21);

- (xxii) General Power of Attorney dated 11.11.2013 executed by Defendants no. 1 to 6 for the amount of Rs. 3,00,00,000/- (Ex. AW-4/22);

- (xxiii) Guarantee Letter dated 11.11.2013 executed by Defendant no. 4 for the amount of Rs. 3,00,00,000/- (Ex. AW-4/23);

- (xxiv) Guarantee Letter dated 11.11.2013 executed by Defendants no. 2 & 3 for the amount of Rs. 3,00,00,000/- (Ex. AW-4/24);

- (xxv) Guarantee Letter dated 11.11.2013 executed by Defendant no. 5 for the amount of Rs. 3,00,00,000/- (Ex. AW-4/25);

- (xxvi) Guarantee Letter dated 11.11.2013 executed by Defendant no. 8 for the amount of Rs. 3,00,00,000/- (Ex. AW-4/26);

- (xxvii) Letter dated 26.03.2014 of Head Office of the Assignor of Applicant no. 4 whereby it considered the request for restructuring the credit facilities to the Defendant no. 1 Company with a limit of Rs. 27.00 Crore which was duly acknowledged by Defendant no. 1 Company (Ex. AW-4/27);

- (xxviii) Resolution of the meeting of Board of Directors of Defendant no. 1 company held on 27.03.2014 (Ex. AW-4/28);

- (xxix) Resolution of the meeting of Board of Directors of Defendant no. 5 held on 27.03.2014 (Ex. AW-4/29);

- (xxx) Resolution of the meeting of Board of Directors of Defendant no. 6 held on 27.03.2014 (Ex. AW-4/30);

- (xxxii) Demand Promissory Note dated 29.03.2014 by Defendant no. 1 Company for Rs. 17,25,00,000/- along with "Take Delivery Letter" (Ex. AW-4/31);

- (xxxii) Hypothecation Agreement dated 29.03.2014 by Defendant no. 1 Company for Rs. 17,25,00,000/- (Ex. AW-4/32);

- (xxxiii) Term Loan Agreement dated 29.03.2014 by Defendant no. 1 Company for Rs. 12,75,00,000/- (Ex. AW-4/33);

- (xxxiv) Term Loan Agreement dated 29.03.2014 by Defendant no. 1 Company for Rs. 4,70,00,000/- (Ex. AW-4/34);

- (xxxv) Hypothecation Agreement dated 29.03.2014 by Defendant no. 1 Company for Rs. 12,75,00,000/- (Ex. AW-4/35);

- (xxxvi) Hypothecation Agreement dated 29.03.2014 by Defendant no. 1 Company for Rs. 4,70,00,000/- (Ex. AW-4/36);

- (xxxvii) General Power of Attorney for Book Debts dated 29.03.2014 by Defendant no. 1 Company for Rs. 17,25,00,000/- (Ex. AW-4/37);

- (xxxviii) Letter of Guarantee dated 29.03.2014 by Defendants no. 2 & 3 for securing facility of Rs. 12,75,00,000/- granted to Defendant no. 1 Company (Ex. AW-4/38);

- (xxxix) Letter of Guarantee dated 29.03.2014 by Defendant no. 4 for securing facility of Rs. 12,75,00,000/- granted to Defendant no. 1 Company (Ex. AW-4/39);

- (xl) Letter of Guarantee dated 29.03.2014 by Defendant no. 5 for securing facility of Rs. 12,75,00,000/- granted to Defendant no. 1 Company (Ex. AW-4/40);

- (xli) Letter of Guarantee dated 29.03.2014 by Defendant no. 6 for securing facility of Rs. 12,75,00,000/- granted to Defendant no. 1 Company (Ex. AW-4/41);

- (xlii) Office copy of Demand Notice dated 25.11.2014 issued by Applicant No. 4 u/s 13(2) of SARFAESI Act to the Defendants (Ex. AW-4/42-colly);

- (xliii) Statement of Account starting from 01.04.2013 duly certified under the Banker's Book of Evidence Act along with Statements of Calculation of accrued uncharged interest (Ex. AW-4/43-colly).

4.4 To prove their case, the Applicant Bank No. 5 / IOB leads its evidence by filing the affidavit of Sh. Khatak Rajbir Singh, Assistant General Manager of Applicant Bank.

Sh. Khatak Rajbir Singh, office of Applicant Bank no. 5 has placed reliance on following documents:-

- (i) Copy of Power of Attorney executed by Applicant Bank no. 5 in favour of the Deponent (Ex. AW-5/1);

- (ii) Sanction Letter dated 14.12.2011 issued by Applicant Bank no. 5 whereby it sanctioned fresh credit facilities of Rs. 30.00 Crore which was duly accepted by the Borrower / Guarantors (Ex. AW-5/2);

- (iii) Request Letter dated 06.10.2011 of Defendant no. 1 Company to Applicant no. 5 Bank, requesting to become a member bank for Rs. 30.00 Crore in the Consortium (Ex. AW-5/3);

- (iv) Resolution in the meeting of Board of Directors of Defendant no. 1 Company held on 15.12.2011 (Ex. AW-5/4);

- (v) Demand Promissory Note dated 21.12.2011 by Defendant no. 1 Company in favour of Applicant no. 5 bank for Rs. 30.00 Crore (Ex. AW-5/5);

- (vi) Letter of Continuity dated 21.12.2011 for Rs. 30.00 Crore (Ex. AW-5/6);

- (vii) Letter of Hypothecation dated 21.12.2011 in favour of Applicant no. 5 bank for Rs. 30.00 Crore (Ex. AW-5/7);

- (viii) Letter of Hypothecation (in case of open advances) dated 21.12.2011 (Ex. AW-5/8);

- (ix) Letter of Hypothecation (for securing machineries / vehicles / goods / book debts) dated 21.12.2011 (Ex. AW-5/9);

- (x) Guarantee of Defendants no. 2, 3 & 4 dated 12.12.2011 for Rs. 30.00 Crore (Ex. AW-5/10);

- (xi) Guarantee of Defendant no. 5 dated 12.12.2011 for Rs. 30.00 Crore (Ex. AW-5/11);

- (xii) Guarantee of Defendant no. 6 dated 12.12.2011 for Rs. 30.00 Crore (Ex. AW-5/12);

- (xiii) Sanction Letter dated 16.03.2013 of Applicant No. 5 whereby it renewed the existing credit facility of Rs. 35.00 Crore (Ex. AW-5/13);

- (xiv) Resolution of the meeting of Board of Directors of Defendant no. 1 company held on 24.09.2013 (Ex. AW-5/14);

- (xv) Resolution of the meeting of Board of Directors of Defendant no. 1 company held on 25.09.2013 (Ex. AW-5/15);

- (xvi) Demand Promissory Note dated 25.09.2013 executed by Defendant no. 1 Company for Rs. 5.00 Crore in favour of Applicant No. 5 Bank (Ex. AW-5/16);

- (xvii) Letter of Continuity dated 25.09.2013 executed by Defendant no. 1 Company for Rs. 5.00 Crore in favour of Applicant No. 5 Bank (Ex. AW-5/17);

- (xviii) Letter of Hypothecation (for securing machineries / vehicles / goods / book debts) dated 25.09.2013 executed by Defendant no. 1 Company for Rs. 5.00 Crore in favour of Applicant No. 5 Bank (Ex. AW-5/18);

- (xix) Letter of Hypothecation (in case of open advances only) d dated 25.09.2013 executed by Defendant no. 1 Company for Rs. 5.00 Crore in favour of Applicant No. 5 Bank (Ex. AW-5/19);

- (xx) Letter of Hypothecation to Indian Overseas Bank dated 25.09.2013 executed by Defendant no. 1 Company for Rs. 5.00 Crore in favour of Applicant No. 5 Bank (Ex. AW-5/20);

- (xxi) Guarantee for cash credit etc. dated 25.09.2013 by Defendants no. 2 & 3 in favour of Applicant No. 5 Bank for credit facilities of Rs. 5.00 crore granted to Defendant no. 1 Company (Ex. AW-5/21);

- (xxii) Resolution of the meeting of Board of Directors of Defendant no. 5 held on 24.09.2013 (Ex. AW-5/22);

- (xxiii) Resolution of the meeting of Board of Directors of Defendant no. 5 held on 25.09.2013 (Ex. AW-5/23);

- (xxiv) Guarantee for cash credit etc. dated 25.09.2013 by Defendant no. 5 in favour of Applicant No. 5 Bank for credit facilities of Rs. 5.00 crore granted to Defendant no. 1 Company (Ex. AW-5/24);

- (xxv) Resolution of the meeting of Board of Directors of Defendant no. 6 held on 24.09.2013 (Ex. AW-5/25);

- (xxvi) Resolution of the meeting of Board of Directors of Defendant no. 6 held on 25.09.2013 (Ex. AW-5/26);

- (xxvii) Guarantee for cash credit etc. dated 25.09.2013 by Defendant no. 6 in favour of Applicant No. 5 Bank for credit facilities of Rs. 5.00 crore granted to Defendant no. 1 Company (Ex. AW-5/27);

- (xxviii) Revival Letter dated 25.09.2013 executed by Defendant no. 1 Company in favour of Applicant No. 5 for credit facility of Rs. 30.0 Crore (Ex. AW-5/28);

- (xxix) Letter of Acknowledgement and Confirmation executed by Defendant no. 1 Company in favour of Applicant No. 5 for cash credit outstanding of Rs. 35,35,90,192.00 as on 30.09.2013 (Ex. AW-5/29);

- (xxx) Office copy of Demand Notice dated 15.09.2014 issued by Applicant Bank no. 5 u/s 13(2) of SARFAESI Act to the Defendants (Ex. AW-5/30-colly);

- (xliv) Statement of Account starting from 01.04.2013 duly certified under the Banker's Book of Evidence Act along with Statements of Calculation of accrued uncharged interest (Ex. AW-5/31-colly).

4.5 It is pertinent to note here that this OA was filed by Applicant No. 6 Bank i.e. Syndicate Bank alongwith other Applicants, however, during pendency of this OA, one application being IA No. 540/2025 was filed praying there in to permit the Applicant to amend the memo of parties by substituting the name of Applicant No. 6 from Syndicate Bank to Canara Bank (successor in interest of Syndicate Bank) and said IA was allowed vide Order dated 22.08.2025 by this Tribunal.

Thus, to prove their case, the Applicant Bank No. 6 / Canara Bank (e-Syndicate Bank) leads its evidence by filing the affidavit of Sh. Aakash Singh, Senior Manager of the Applicant Bank.

Sh. Aakash Singh, Officer of the Applicant Bank No. 6 has placed reliance upon the following documents:-

- (i) Authority Letter dated 30.06.2025 executed by Zonal Manager of Applicant Bank in favour of deponent (Ex. AW-6/1);

- (ii) Sanction Letter dated 15.01.2013 issued by Applicant No. 6 for sanctioning Working Capital Limit of Rs. 20.00 Crore, under consortium arrangement for its share of 10%, with Applicant NO. 1 Bank as the lead Bank, copy of which was duly acknowledged and accepted by the Defendant no. 1 Company (Ex. AW-6/2);

- (iii) Resolution of the meeting of Board of Directors of Defendant no. 1 company held on 14.01.2013 (Ex. AW-6/3);

- (iv) Demand Promissory Note dated 22.01.2013 by Defendant no. 1 Company in favour of Applicant no. 6 bank for Rs. 20.00 Crore (Ex. AW-6/4);

- (v) Letter of Continuity dated 22.01.2013 for Rs. 20.00 Crore (Ex. AW-6/5);

- (vi) Composite Hypothecation Agreement dated 22.01.2013 of Defendant no. 1 Company in favour of Applicant no. 6 bank for the amount of Rs. 20.00 Crore (Ex. AW-6/6);

- (vii) Power of Attorney for collection of bills, book debts and other receivables dated 22.01.2013 in favour of Applicant No. 6 Bank (Ex. AW-6/7);

- (viii) Charge and Hypothecation of Book Debts – Agreement dated 22.01.2013 of Defendant no. 1 Company in favour of Applicant no. 6 Bank (Ex. AW-6/8);

- (ix) Guarantee Agreement dated 22.01.2013 of Defendant no. 2 in favour of Applicant No. 6 Bank for Rs. 20.00 Crore (Ex. AW-6/9);

- (x) Guarantee Agreement dated 22.01.2013 of Defendant no. 3 in favour of Applicant No. 6 Bank for Rs. 20.00 Crore (Ex. AW-6/10);

- (xi) Guarantee Agreement dated 22.01.2013 of Defendant no. 5 in favour of Applicant No. 6 Bank for Rs. 20.00 Crore (Ex. AW-6/11);

- (xii) Guarantee Agreement dated 22.01.2013 of Defendant no. 6 in favour of Applicant No. 6 Bank for Rs. 20.00 Crore (Ex. AW-6/12);

- (xiii) Office copy of Demand Notice dated 15.09.2014 issued by Applicant No. 6 Bank issued u/s 13(2) of SARFAESI Act (Ex. AW-6/13-colly);

- (xiv) Statement of Account starting from 01.04.2013 duly certified under the Banker's Book of Evidence Act along with Statement of Calculation of accrued uncharged interest (Ex. AW-6/14-colly).

4.6 To prove their case, the Applicant Bank No. 7 / Phoenix ARC Private Limited leads its evidence by filing the affidavit of Ms. Janhavi Mane, Manager of the Applicant.

Ms. Janhavi Mane, Officer of Applicant No. 7 has placed reliance upon following documents:-

- (i) Copy of Board Resolution dated 07.05.2025 of Applicant No. 7 in favour of the deponent (Ex. AW-7/1);

- (ii) Sanction Letter dated 25.03.2013 of Assignor of Applicant No. 7 which was duly acknowledged and accepted by the Defendant no. 1 Company (Ex. AW-7/2);

- (iii) Resolution passed by the Board of Directors of Defendant no. 1 company on 25.03.2013 (Ex. AW-7/3);

- (iv) Resolution passed by the Board of Directors of Defendant no. 5 company on 25.03.2013 (Ex. AW-7/4);

- (v) Resolution passed by the Board of Directors of Defendant no. 6 company on 25.03.2013 (Ex. AW-7/5);

- (vi) Agreement of Loan for overall limit dated 28.03.2013 executed by Defendant no. 1 Company for Rs. 11.00 Crore (Ex. AW-7/6);

- (vii) Agreement of Hypothecation of goods and assets dated 28.03.2013 executed by Defendant no. 1 Company for Rs. 11.00 Crore (Ex. AW-7/7);

- (viii) Agreement of Pledge dated 28.03.2013 executed by Defendant no. 1 Company for Rs. 11.00 Crore (Ex. AW-7/8);

- (ix) Letter dated 28.03.2013 regarding grant of individual limits within the overall limit (Ex. AW-7/9);

- (x) Deed of Guarantee dated 28.05.2013 issued by Defendant no. 5 for credit facilities of Rs. 11.0 Crore sanctioned to Defendant no. 1 Company (Ex. AW-7/10);

- (xi) Deed of Guarantee dated 28.05.2013 issued by Defendant no. 6 for credit facilities of Rs. 11.0 Crore sanctioned to Defendant no. 1 Company (Ex. AW-7/11);

- (xii) Sanction Letter dated 23.08.2013 issued by State Bank of Patiala (Assignor of Applicant No. 7) for Adhoc sanction of credit limit of Rs. 4.00 Crore which was duly accepted by the Defendants (Ex. AW-7/12);

- (xiii) Resolution of the meeting of Board of Directors of Defendant no. 1 company held on 23.08.2013 (Ex. AW-7/13);

- (xiv) Resolution of the meeting of Board of Directors of Defendant no. 5 held on 23.08.2013 (Ex. AW-7/14);

- (xv) Resolution of the meeting of Board of Directors of Defendant no. 6 held on 23.08.2013 (Ex. AW-7/15);

- (xvi) Letter dated 23.08.2013 regarding grant of individual limits within the overall limit (Ex. AW-7/16);

- (xvii) Agreement of loan for overall limit dated 23.08.2013 executed by Defendant no. 1 company for Rs. 4.00 Crore (Ex. AW-7/17);

- (xviii) Agreement of Hypothecation of goods and assets dated 02.09.2013 executed by Defendant no. 1 Company for Rs. 4.00 Crore (Ex. AW-7/18);

- (xix) Deed of Guarantee dated 02.09.2013 issued by Defendants no. 2 & 3 for credit facilities of Rs. 4.00 Crore sanctioned to Defendant no. 1 Company (Ex. AW-7/19);

- (xx) Deed of Guarantee dated 02.09.2013 issued by Defendant no. 5 for credit facilities of Rs. 4.00 Crore sanctioned to Defendant no. 1 Company (Ex. AW-7/20);

- (xxi) Deed of Guarantee dated 02.09.2013 issued by Defendant no. 6 for credit facilities of Rs. 4.00 Crore sanctioned to Defendant no. 1 Company (Ex. AW-7/21);

- (xxii) Sanction Letter dated 15.02.20214 issued by the assignor of Applicant no. 7 whereby it converted the adhoc limit of Rs. 4.00 Crore into regular limit and enhanced the FBWC facility from Rs. 11.00 crore to Rs. 15.00 Crore (Ex. AW-7/22);

- (xxiii) Letter dated 31.03.2014 of Assignor of Applicant Bank whereby it conveyed the sanction of the restructuring package of the Defendant no. 1 (Ex. AW-7/23);

- (xxiv) Resolution in the meeting of Board of Directors of Defendant no. 1 company held on 31.03.2014 (Ex. AW-7/24);

- (xxv) Resolution in the meeting of Board of Directors of Defendant no. 5 held on 31.03.2014 (Ex. AW-7/25);

- (xxvi) Resolution in the meeting of Board of Directors of Defendant no. 6 held on 31.03.2014 (Ex. AW-7/26);

- (xxvii) Agreement of Loan for Overall Limit dated 31.03.2014 of Defendant no. 1 company the amount of Rs. 17.33 Crore (Ex. AW-7/27);

- (xxviii) Agreement of Hypothecation of Goods and Assets dated 31.03.2014 of Defendant no. 1 company for the amount of Rs. 17.33 Crore (Ex. AW-7/28);

- (xxix) Letter regarding grant of Individual Limits within the Overall Limits dated 31.03.2014 of Defendant no. 1 company the amount of Rs. 17.33 Crore (Ex. AW-7/29);

- (xxx) Deed of Guarantee dated 31.03.2014 of Defendant no. 2 in favour of Assignor of Applicant no. 7 for Rs. 17.33 Crore (Ex. AW-7/30);

(xxxii) Deed of Guarantee dated 31.03.2014 of Defendant no. 3 in favour of Assignor of Applicant no. 7 for Rs. 17.33 Crore (Ex. AW-7/31);

(xxxii) Deed of Guarantee dated 31.03.2014 of Defendant no. 4 in favour of Assignor of Applicant no. 7 for Rs. 17.33 Crore (Ex. AW-7/312);

(xxxiii) Deed of Guarantee dated 31.03.2014 of Defendant no. 6 in favour of Assignor of Applicant no. 7 for Rs. 17.33 Crore (Ex. AW-7/33);

(xxxiv) Office copy of Demand Notice dated 02.09.2014 issued by Applicant No. 7 u/s 13(2) of SARFAESI Act to the Defendants (Ex. AW-7/34-colly);

(xxxv) Statement of Account starting from 01.04.2013 duly certified under the Banker's Book of Evidence Act along with Statements of Calculation accrued unchanged interest (Ex. AW-7/35-colly).

5. So far as, evidence of Defendants no. 1 to 6 is concerned, they also filed the evidence as mentioned below:-

(i) Defendant no. 2 filed the Evidence by way of Affidavit of Sh. Surender Bansal (being Defendant no. 2 himself);

- (ii) Defendants no. 3 & 5 have filed their Evidence by way of Affidavit of Ms. Shefali Bansal (being Defendant no. 3 and Director of Defendant no. 5);

- (iii) Defendant no. 4 filed the Evidence by way of Affidavit of Sh. Deshraj Aggarwal (being Defendant no. 4 himself);

- (iv) Defendant no. 6 filed the Evidence by way of Affidavit of Sh. Sanjay Kumar Dubey / Authorized Signatory of Defendant no. 6.

It is pertinent to note here that Defendants did not chose to file any document in support of their WS(s) or Evidence(s).

6. During the pendency of this OA, it was informed by the parties that CIRP proceedings are pending qua Defendant no. 1 Company as well as Defendant no. 5 Company before Ld. NCLT, New Delhi. Moreover, it was also brought to the knowledge of this Tribunal that personal insolvency proceedings are pending qua Defendants no. 2 & 3 before Ld. NCLT, Delhi (copies of relevant orders passed by Ld. NCLT have been placed on record)

In the light of above, it is clear that Defendants no. 1 to 3 & 5 before Ld. NCLT, Delhi.

7. Heard Ld. counsel for Applicant Banks and perused the entire record.

7.1 Since, Defendants no. 1 to 3 and 5 are already before Ld. NCLT, New Delhi, hence, there is no need to deal with the objections raised by these Defendants in their respective WS(s).

7.2 Now, I would like to deal with the objections raised by Defendants no. 4 & 6 in following paras:-

- (i) Defendants no. 4 & 6 have raised an objection that the instant OA is bad in law for mis-joinder of parties and mis-joinder of causes of action and has been presented without payment of proper court fees. It is stated that this OA has been filed jointly by seven applicants who have separate causes of action and are required to seek leave of this Hon'ble Tribunal as per the provisions of Section 19 of RDB Act before joining an OA on payment of appropriate court fees. Hence, this OA is liable to be dismissed on these grounds alone.

I have gone through the record of this case file. Admittedly, this OA has been filed by 7 Applicants (being members of "BOI Consortium") qua same set of Defendants. The credit facilities were sanctioned by the Applicants no. 1 to 7 in their individual capacities as well as being members of "BOI Consortium". This OA has been filed by Applicants no. 1 to 7 being consortium members. As per RDB Act, amount of fees payable by Applicant is calculated on the amount of debt due and when this OA is filed by "BOI Consortium", this Tribunal is of the view that appropriate court fees of Rs. 1,50,000/- (maximum) has already been paid by the Applicants.

So far as, question of mis-joinder of parties and cause of action is concerned, I do not find any merit in the contention of Defendants no. 4 & 6.

In the light of above, this plea of Defendants no. 4 & 6 is liable to be rejected and same stands rejected.

- (ii) Defendants no. 4 & 6 have also taken a plea that the Applicant has not provided the certified and complete original Statement of Account along with the OA in respect of Credit Facility allegedly availed of by the Defendant no. 1. It is stated that the claim of the Applicant is highly excessive and contrary to law and can't be granted. Moreover, the same is false, incorrect and contrary to law. Further, the rates of interest as claimed in this OA is an absence of specification of rate of interest stipulated from time to time. It is also stated that the Statement of Account does not contain the necessary break up as per the Judgment of Hon'ble Supreme Court in the case of *Central Bank of India Vs. Ravindra*. The IT Certificates annexed to the OA are not in accordance with the provisions of the Information Technology Act, 2000 and/or the Banker's Book Evidence Act, 1891.

It is matter of record that all the Applicants have already filed their respective Statement of Accounts duly certified under the Banker's Book of Evidence Act along with Statement of Calculation of accrued interest uncharged interest.

On the other hand, Defendants no. 4 & 6 has not chosen to file their own statement of accounts. This Tribunal is of the view that this objection of Defendants no. 4 & 6 is merely a bald allegation without any substantial documentary evidence, hence, same is liable to be dismissed and same stands dismissed.

- (iii) Next objection raised by Defendants no. 4 & 6 is that the persons who have signed and verified the OA does not have lawful and valid authority to do so. Thus, the institution of OA is bad in law and as such same deserves to be dismissed with costs.

It is matter of record that all the Applicants have duly filed their respective Authority Letter(s) / Board Resolution(s) in favour of their respective officers which have already been proved by the Applicants in the OA. Even otherwise, no infirmity is found in the said authorization(s) filed by the Applicants No. 1 to 7. Hence, this plea of Defendants no. 4 & 6 stands rejected.

- (iv) Defendants no. 4 & 6 have also taken a plea that the claims of Applicants no. 1 to 7 in the OA are barred by limitation as can also be ascertained from the alleged loan documents.

It is matter of record that various security documents were executed by the Defendants from time to time and lastly in August 2013 when certain facilities were sanctioned to the Borrower Company by "BOI Consortium" (wherein Applicants no. 1 to 7 were members) whereas this OA was filed on 19.04.2016. Hence, this OA is filed well within the period of limitation.

Moreover, Applicant Bank has also filed Audit Report(s) dated 06.06.2012 and 05.06.2013 along with Balance Sheet and Profit & Loss accounts as on 31.03.2012 and 31.03.2013, wherein Defendant no. 1 Company has mentioned about the loan accounts of Applicants (duly proved by Applicants). Even otherwise, present matter pertains to recovery of amount advanced to the Borrower Company against the mortgage of immovable properties. In this case, equitable mortgage was created at the time of disbursal of loan facilities from time to time till March 2014 wherein the mortgage of immovable properties of Defendants no. 2 & 6 is involved and recovery suit is filed which is covered under Article 62 of Limitation Act under which the Suit / OA is filed to enforce payments secured by the mortgage / otherwise charged upon the immovable property wherein the period of limitation is 12-years.

Thus, it is clear that this OA has been filed well within the period of limitation. Accordingly, this plea of Defendants no. 4 & 6 is not tenable and same is hereby rejected.

- (xiv) Next objection raised by Defendants no. 4 & 6 is that the Firm M/s Bansal Diamonds is not a party to the present OA and as such loan allegedly granted by the Applicant no. 1 to the said Firm cannot be considered in the present OA.

It is matter of record that historically, Defendant no. 2 herein was the sole proprietor of the Firm "Bansal Diamonds" which availed the loan in the year 2006 & 2007 and during the pendency of said financial assistance, a Pvt. Limited Company by the name and style "Bansal Diamonds Pvt. Ltd." was incorporated under the Companies Act, 1956 with Mr. Surender Kumar, Ms. Shefali Bansal as initial subscribers. Applicant Bank has already filed copy of certified copy of Memorandum of Association and the Articles of the Association of the said Company with Certificate of Incorporation dated 10.09.2007 which was furnished to the Bank by Bansal Diamond Pvt. Ltd. It is also admitted position that Defendant no. 1 company in its present name as well as in its previous name availed loan facilities from the Applicant no. 1 Bank and thereafter, Defendant no. 1 Company was sanctioned credit facilities from all the Applicants in their individual capacity as well as being members of "BOI Consortium" as well. Since, this fact is not denied by the Defendants, hence, at the time of paying the dues of the Applicants, this plea of Defendants is not acceptable and same stands rejected.

(xv) Defendants no. 4 & 6 have also taken a plea that the alleged Loan Documents especially the guarantee agreements are not stamped as per law rather executed on expired stamp papers and as such not enforceable.

This Tribunal is of the view that once Defendants have not denied the availment of loan facilities from the Applicants nor execution of security documents including guarantee agreements, now at the time of paying the dues of the Applicants, they cannot be benefited for want of stamp duty etc. on the security documents. With these observations, this objection of Defendants no. 4 & 6 stands dismissed.

- (xvi) Defendants no. 4 & 6 have denied the alleged mortgages of properties 'A' to 'J' as well as Attendance / Recital Register etc.

This Tribunal is of the view that mere denial by the Defendants does not suffice the purpose of Defendants. Even otherwise, Applicant Banks have already filed documentary evidence in support of their case. Hence, this plea of Defendants no. 4 & 6 is liable to be rejected and same stands rejected.

- (xvii) Next objection raised by Defendants no. 4 & 6 is that the alleged guarantees are blanks at many places and do not even contain the names of the alleged guarantors. Thus, these defendants completely deny the execution, legality and validity of the said documents.

It is matter of record that Defendants no. 4 & 6 have not filed any documentary evidence in support of their contention. Even otherwise, in the light of law laid down by the Hon'ble Delhi High Court in the matter of "Indian Bank Vs. Cheese Wafers (India) Pvt. Ltd. wherein it was held if the defendants have not filed any complaint before higher authorities of the bank or filed any complaint before police authorities.....". Thus, the plea of signing the documents under misrepresentation / blank / unfilled documents / without consent, alleged to be misused by the Applicant Banks, is not maintainable after filing of the suit. Accordingly, this objection of Defendant no. 1 is hereby rejected.

(xviii) Defendants no. 4 & 6 have also taken a plea that he alleged Assignment by Karnataka Bank in favour of Applicant No. 4 is illegal and without the knowledge and consent of these Defendants and these defendants are discharged by unilateral variance in the terms of alleged contract by Karnataka Bank. It is also stated that the alleged assignment agreement is not stamped and registered as per law and does not transfer the alleged underlying securities with it in favour of Applicant No. 4.

It is matter of record that the Assignment Agreement executed between Karnataka Bank (Assignor) and Applicant no. 4 herein (Phoenix ARC Pvt. Ltd.) and the Defendants herein have nothing to do with the same. Applicant Banks no. 1 to 7 have already filed documentary evidence in support of their claim which clearly shows that the Defendants duly availed the credit facilities. Hence, now at the time of paying the dues of the Applicants, Defendants no. 4 & 6 cannot take such plea to get absolve from their liability. With these observations, this plea of Defendants no. 4 & 6 stands rejected.

- (xix) Next objection of Defendants no. 4 & 6 is that the alleged balance confirmation letter(s) are not supported by Statement of Accounts for the relevant periods.

As already discussed above, Applicant Banks have already filed their respective Statement of Accounts which have been duly proved as well. Hence, this plea of Defendants no. 4 & 6 stands rejected.

- (xx) Defendants no. 4 & 6 have also raised an objection that the alleged corporate guarantee of Defendants no. 5 & 6 is not backed by board resolution.

Record reveals that Defendants no. 5 & 6 executed their respective Board Resolutions from time to time whereby they resolved to execute their respective corporate guarantees from time to time and same have already been proved by the Applicants. Hence, this plea of Defendants does not hold any water and same stands rejected.

- (xxi) Next plea taken by Defendants no. 4 & 6 is that admittedly, the Defendant no. 4 has not executed any guarantee for the alleged loan granted by Applicant no. 6, therefore, it stood discharged by unilateral variance in terms of the contract. Similar contention is raised for the loan allegedly granted by the assignor of the Applicant No. 7. It is stated that the Defendants no. 2 to 4 have not executed any guarantee for the alleged loan of Rs. 11.0 Crore allegedly granted by Applicant no. 7, therefore, stood discharged under the law of contact from all the liabilities as sureties, if at all it existed. Moreover, it is also alleged that Defendant no. 4 is not a guarantor for the alleged consortium documents and as such stood discharged from the alleged liabilities of the Applicant No. 3, if at all it existed, on account of novation in terms of contract and under various other provisions of Contract Act pertaining to law of security. Same contentions are adopted by these defendants in respect of the alleged loan / documents of Rs. 20.0 Crore allegedly granted by the assignor of Applicant No. 4 outside the consortium as are taken by these defendants in respect of the alleged loan of Rs. 33.0 crore of Applicant no. 3 as aforesaid.

I have gone through the entire record of this case file as well as Guarantee Deed(s) executed by Defendant no. 4 from time to time (which includes Guarantee Deed dated 30.08.2013 executed by Defendant no. 2 to 4 in favour of "BOI Consortium" having members / Applicants no. 1 to 7 herein.


Admittedly, at the time of sanctioning of facilities by Applicant no. 6 individually, Defendant no. 4 did not execute any guarantee Deed but it is also matter of record that at the time of availing facility from "BOI Consortium" (wherein Applicant no. 5 is one of the member), Defendant no. 4 executed Guarantee Agreement along with Defendants no. 2 & 3 on 30.08.2013 (Ex. AW-1/251). Similarly, Defendant no. 4 executed Guarantee Agreements in favour of Assignor of Applicant No. 4 as well as in favour of "BOI Consortium" from time to time. Moreover, Defendant no. 4 also executed Guarantee Agreement(s) in favour of Assignor of Applicant no. 7 also as well as in favour of "BOI Consortium". Moreover, it is also evident from the Guarantee Agreements executed by Defendant no. 4 in favour of "BOI Consortium" (having Applicants no. 1 to 7 as members) as well as in favour of Applicant Banks (which sanctioned loans individually) that all the said guarantee(s) are continuing one. In these circumstances, this Tribunal is of the view that present objection of Defendants no 4 & 6 does not hold any water and same stands rejected.

(xxii) Defendants no. 4 & 6 have taken a plea that the alleged assignment deed executed by Assignor (State Bank of Patiala) in favour of Applicant no. 7 is without the consent and authority of these defendants resulting into discharge of these defendants. Further, the said agreement is not stamped and registered as per law and does not carry with it underlying securities.

It is matter of record that the Assignment Agreement executed between State Bank of Patiala (Assignor) and Applicant no. 7 herein (Phoenix ARC Pvt. Ltd.) and the Defendants herein have nothing to do with the same. Applicant Banks no. 1 to 7 have already filed documentary evidence in support of their claim which clearly shows that the Defendants duly availed the credit facilities. Hence, now at the time of paying the dues of the Applicants, Defendants no. 4 & 6 cannot take such plea to get absolve from their liability. With these observations, this plea of Defendants no. 4 & 6 stands rejected.

7.3 On the other hand, the witnesses of applicant banks have fully corroborated the averments made in the OA. Even otherwise the whole case of the applicant bank/s is based on the documents and the witness has duly proved all these documents. The evidence filed by the applicant banks gone unrebutted and there is no question of disbelieving the evidence lead by the applicant banks and applicant banks have proved its case beyond reasonable doubts. Accordingly, the Applicant Banks are entitled to recover the entire amount, as claimed in the OA from the defendants along with pendentelite interest i.e. @13% p.a. and costs as agreed between the parties.

7.4 In this OA, Applicant Banks have prayed to issue recovery certificate against Defendants no. 1 to 6 wherein 

the Defendant 1 is Principal Borrower; Defendants no. 2 to 4 are personal guarantors and Defendants no. 5 & 6 are corporate guarantors.

7.7 It is matter of record that CIRP proceedings qua Defendants no. 1 & 5 and Personal Insolvency proceedings qua Defendants no. 2 & 3 have been before Ld. NCLT, Delhi. In these circumstances, no final order can be passed qua Defendants no. 1 to 3 & 5, at this stage.

However, it is directed that Applicant Banks shall be at liberty to revive the OA qua Defendants no. 1 to 3 & 5 in case CIRP / personal insolvency proceedings are quashed / withdrawn in future, in accordance with law.

It is also directed that in case applicant Banks receive any amount from CIRP / personal insolvency proceedings, they shall give due adjustment of the same in the recovery proceedings.

7.8 Consequently, TA No. 344/2022 is liable to be allowed in favour of Applicant Banks against Defendants no. 4 & 6 only (being personal and corporate guarantors to the Borrower company i.e. Defendant no. 1), who are liable to pay the dues of the Applicant Banks no. 1 to 7 along with costs and pendentelite & future interest @13% p.a., from the date of filing of present OA, till the date of payment in full.

ORDER

- (i) TA No. 344/2022 stands allowed in favour of Applicant Banks no. 1 to 7 and against the Defendants no. 4 & 6 for a sum of Rs. 313,91,41,957.86 (Rupees Three Hundred Thirteen Crore Ninety One Lakh Forty One Thousand Nine Hundred Fifty Seven and Paise Eighty Six only) as per following table :-

<thead> <tr> <th>Applicant Bank(s)</th> <th>Amount Due as on 29.02.2016</th> </tr> </thead> <tbody> <tr> <td>Applicant No. 1 / Bank of India</td> <td>Rs. 76,68,86,650.20</td> </tr> <tr> <td>Applicant No. 2 / Punjab National Bank</td> <td>Rs. 49,93,56,352.30</td> </tr> <tr> <td>Applicant No. 3 / Bank of Maharashtra</td> <td>Rs. 45,69,99,925.00</td> </tr> <tr> <td>Applicant No. 4 / Phoenix ARC Pvt. Ltd.</td> <td>Rs. 42,18,77,703.00</td> </tr> <tr> <td>Applicant No. 5 / Indian Overseas Bank</td> <td>Rs. 49,47,40,102.89</td> </tr> <tr> <td>Applicant No. 6 / Canara Bank (e-Syndicate Bank)</td> <td>Rs. 29,63,58,387.19</td> </tr> <tr> <td>Applicant No. 7 / Phoenix ARC Pvt. Ltd.</td> <td>Rs. 20,29,22,837.28</td> </tr> </tbody> </table>

along with pendentelite and future interest @13% p.a. from the date of filing of this OA till the date of actual and final realization along with costs of this OA. Now Defendants no. 4 & 6 are directed to pay to the Applicant Banks the aforesaid amount, within 30 days, failing which, the aforesaid amount shall be recovered from the sale of secured assets / mortgaged properties / hypothecated assets / stocks / pledged shares etc., if any, belonging to the Defendants no. 4 & 6.

In case of shortfall, same shall be recovered from the movable and immovable assets of Defendants no. 4 & 6.

- (ii) Since CIRP / Personal insolvency proceedings qua Defendants no. 1 to 3 & 5 are pending before Ld. NCLT, Delhi. Hence, no final order can be passed qua Defendants no. 1 to 3 & 5, at this stage, as discussed above.

However, it is directed that Applicant Banks shall be at liberty to revive the OA qua Defendants no. 1 to 3 & 5 in case CIRP / personal insolvency proceedings are quashed / withdrawn in future, in accordance with law.

It is also directed that in case applicant Banks receive any amount from CIRP / personal insolvency proceedings, they shall give due adjustment of the same in the recovery proceedings.

It is also directed that in case Applicant Banks receives any amount from liquidation proceedings of Defendant no. 4 / Principal Borrower pending before Ld. NCLT, New Delhi, they shall give due adjustment of the same in the recovery proceedings.

- (iii) It is also directed that the sale proceeds of the secured assets shall be distributed between the Applicant Banks, as per inter-se agreements executed amongst them.

- (iv) It is also directed that the applicants shall adjust the amount(s), if any, received from the defendants during the pendency of this case.


- (v) The recovery certificate be issued forthwith and be sent to the Recovery Officer-II, Debts Recovery Tribunal-III, Delhi.

- (vi) Parties are directed to appear before the Recovery Officer-II, DRT-III, Delhi on 22.07.2026.

- (vii) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

File be closed and consigned to records.

20.05.2026

(SHIV KUMAR - I) PRESIDING OFFICER, DRT-III, DELHI

(Pronounced in open court) Dated: 20.05.2026